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As a counterpoint, I'm not sure why anyone would use a broker when it is clear they also need to get paid; and you can call a dozen banks to get their interest
by cpwright 11y ago
As a counterpoint, I'm not sure why anyone would use a broker when it is clear they also need to get paid; and you can call a dozen banks to get their interest rates for whatever kind of loan you're trying to get yourself. When you're talking about hundreds of thousands of dollars (or maybe even over a million), doing a bit of work yourself seems like a good idea.
- jholman 11y agoWell, in theory the broker is getting paid by the lender, not by me (the borrower). Of course, we all know that in a rational market, that cost has to be passed on to me. And yet strangely, I get a better offer when I ask the broker than when I straight up tell the bank "I'm going to go to a broker now, and so this is your last chance to beat whatever offer they're going to give me". Conclusion: lenders are irrational. Surprise!
- LordKano 11y agoI suspect that this has something to do with the fact that a portion of the administrative work is offloaded to the broker. I never met anyone from the lender when I got my mortgage. All of the background investigation, income/employment verification and paperwork was completed with the broker.