Mortgage Broker

[Chelsea]

Today I called 10 or 12 mortgage lenders listed in the Sunday paper just to see which ones will finance manufactured homes. One of the places I called turned out to be a mortgage broker who said they would take my application and shop it around to get me the best rate. The cost for doing this was $60 for the application fee and another $250 once I settled on one lender.

Doesn't this sound like the best way to go? I don't want to have my credit pulled 12 times to get the best rate, and then have my score lowered because of all the numerous credit checks.

The name of this company was All Access Mortgage - anybody heard of them?

Thanks-

[rmurray]

Do you know your credit score...brokers are good for those with less than 620 scores or for those with special situations such as unverifiable income....

Best would be a loan directly from a lender..They all do manufactured homes when on permanent foundations..

[Chelsea]

My credit score is over 700. I talked to several lenders who said they do NOT finance manufactured homes - even on their own land with permanent foundations -a couple of them were Chateau Mortgage and United States Mortgage. Don't remember the other ones, but there were several.

Another lender said that they WOULD finance m-h's, but at a slightly higher rate and with stricter criteria - for instance, you have to have tie-downs. I told her that all m-h's have tie-downs. She didn't seem to know much.

But why would it not be better to make ONE application and let the broker trot it around for the best rate? Am I missing something?

[rmurray]

He is not trotting it around...he will call it to a mortgage company and they will pull thier own credit file...

My only objection to a broker for your situation is that he will have to add his fees on top of the banks...

Have you tried any of the lenders listed on this site...there are many here ...Find Chase mortgage, Countryside Mortgage, Regions Mortgage...

Good Luck

[Chelsea]

I'm confused. I keep hearing over and over NOT to have my credit run by different lenders because every time it's run, the beacon comes down. I'm trying to avoid that - which is why I thought a broker was the best way to go.

Also - Fleetwood told me that that's the way they work for their customers to get the best rate - they take the application, run the credit, send the info to 17 different lenders, and then pick the best rate.

What do you mean by "they will call it to a mortgage company and they will pull their own credit file"?

[rmurray]

Your credit would be checked by all 17 lenders...Actually this is a terrible way for a dealer to do business..He should be able to review your file and know his lenders well enough to direct it to the 1 best lender..

A few points about credit scoring..
of a possible 900 points on a FICO score only 45 are effected by credit inquiries...
Fair Issacson (the FICO score folks) understand for a home or auto you will want to shop for the best deal...The following is directly from the Equifax web site explaining scores..


"Will I be penalized for shopping around for the best rate?

Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries for your credit score from auto or mortgage lenders within a short period of time. The BEACON® FICO® score treats these as a single inquiry, which will have little or no impact on your credit score.

This is how it works. The BEACON® FICO® score ignores all auto- or mortgage-related inquiries that occur within the 30-day period previous to an inquiry from an auto or mortgage lender (called the "buffer" period). And prior to that buffer period, the scoring software also notes when earlier inquiries were made - if any - and counts back 14 days from each one. The score then counts all auto- or mortgage-related inquires made within any 14-day period as just one inquiry.

For example: John Doe is shopping for a mortgage loan and a lender gets his credit report on November 30. Johns credit report also lists three other mortgage inquiries that were made earlier that month. The FICO® score ignores those previous mortgage inquiries because they all fell into the 30-day buffer period.

Now let us say that John also purchased a car three months before he began shopping for a mortgage loan. His car shopping resulted in three inquiries from different banks and credit unions over several days. Since they occurred within the same 14-day period, those three inquiries are counted as just one inquiry by the FICO® score."

Good Luck

[Chelsea]

What a lot of nonsense !!!!!!!!!! Why should a credit inquiry EVER count against you? If I want to check my credit every WEEK for no reason at all, why should that affect my score one way or the other? I either pay my bills on time or I don't. I don't trust banks, credit bureaux or insurance companies - they all play these stupid little games. You have to watch them like a hawk.

Thanks for your help, though.

[rmurray]

Well now you and I agree...Fico score are now used in many areas.. auto insurance, homeowners insurance, credit cards, auto loans and home loans..Even some landlords are using the score to decide to rent property...
Much bigger effect on scores is the kind of credit you have..I have seen many files with very low scores and perfect credit..just the "wrong" kind of credit..
Also..full credit cards are VERY negative...but why..if you are within and faithfully living up to your contract with the lender..why should you be penalized????
A true story about me...13 months ago I went to buy a car on the 0% interest program...My score was slightly lower than the required..after looking at the cb file..I realized that one of my very low rate credit cards was near the limit..the others were nearly empty because I balance transfer to lower the interest...I call my card lender and asked for a limit increase, got it at a fee I might say ($35)..then went to the local cb and paid (another $ 35) to have my files updated and a new score produced..All this took 48 hours..Went back to the dealer..my score was now 75 points higher and got the loan...Same person, same credit, same debt and same income..OH WELL

[Mrs X]

That story really illustrates how dumb the system is. Thinking logically, the car lender should have been more nervous about you having a higher credit limit that you might take advantage of and therefore become even MORE financially strapped, If you were right AT your limit on the day you walked into the place, that means you couldn't charge too much more and your monthly obligation wasn't going to go any higher, right?

If I were a mortgage lender, my big fear would be that Joe Blow bought the house, then ran up a bunch of credit card debt, then got into such finanical bondage that he had to file bankruptcy to keep the credit card collectors off his back and then I couldn't get the house back. (isn't that how that works? People filing bankruptcy to keep their house from being foreclosed on, or am I misunderstanding something?)

I've found that the easiest, least stressful route to take is to NEVER use credit cards except in an "emergency" situation (i.e., car repair, doctor bill, etc.), pay cash for everything and use credit only for things like houses. Yes, you DO have to wait to get things you want - for instance, I didn't have a computer until 1999 - I saved up $800 and then bought it - I drive used cars that I pay cash for, etc. etc., but it's BECAUSE of my thriftiness (some people call it "eccentricity") that I am now able to qualify for a mortgage on my rather modest salary.

That's the way EVERYBODY used to live, but it's gone the way of the dinosaur.

Signed,

Brontosaurus

[rmurray]

"People filing bankruptcy to keep their house from being foreclosed on, or am I misunderstanding something?)"

Bankruptcy cannot force the sale of a home to payoff debt other than a mortgage..

In Chapter 13..mortrgage lenders must stop foreclosure proceedures, roll behing payments into the Chapt. unsecured portion that the person pays over 60 months..but the customer MUST keep his payment up to date all through the bankruptcy..The bank can still foreclose..

In Chapter 7..a homeowner can save his home...but MUST pay any behind payments and redeem the home after the bankruptcy from the mortgage company by agreeing to pay all future payments on time...the mortgage still is outstanding..

The rich have for years...bought homes cash (especailly in FL)..ran up lots of other debt..file bankruptcy and the equity in the Free and Clear home is fully protected..I have heard of some who paid many millions for home in Florida...borrowed much more other than a mortgage..filed and kept their millions in the home..