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Well, 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 passe
by jholman 11y ago
Well, 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.