We were brokered a Rocket Mortgage Loan

[Bryce Platz]

Hey BP!

Maybe I'm reading into this too much, but I'm feeling somewhat uneasy after finding out that our conventional mortgage will be serviced by Rocket Mortgage (Quicken Loans).

Here's the backstory: my wife and I are under contract on a single family home and I put a lot of effort into finding the best mortgage for us. I admit that I fell into a bit of an interest rate chase (which I know we're not supposed to do, David). However, in my defense, I hooked up with an old acquaintance who happens to be a loan officer and he was consistently offering a point below the competition with no discount points. During our search, I kept in touch with him at the top of each week to confirm that we were in a similar spot for rates and that he was still our best option. 

Anyway, we get into escrow and our initial loan disclosures are different than what we were expecting. I totally get that rates are hiking right now (honestly that's a big reason why we're on the hunt in the first place), but the difference in the interest rate was over half a point and we are now being charged 5/8 point in discount fees on top of it. Ultimately, it's all good because the discount will pay itself off in two years and it's still a better rate than we expected elsewhere.

It's been such a whirlwind because we've got a short contingency period and I didn't realize until last night that there was no one listed in the loan servicer section of our disclosures. I thought that was really odd so I reached out to my loan officer and he said that we'll be serviced by Rocket Mortgage. Am I correct in being a little uneasy about this? My gut is telling me that it's weird that I went through all this effort to find a middleman (broker) to secure me the best loan and what he got me was something I could lock in via a google search. Does Quicken loans have special deals for brokers that actually make this worth it?

Keep in mind that the jungle drums of escrow are in the back of my head and, despite my best efforts, emotion is creeping into every decision. I can totally accept that I'm overreacting in this case, but we've already been put on edge by the change in the rate and the discount points so I figured it was best to get some answers.

Thanks!

[Erik Estrada]

@Bryce Platz Mortgage brokers work with several lenders that offer wholesale pricing. The lenders are motivated to give better rates, ltvs, terms, and incentives to win over the broker's business. Additionally, the whole loan process is also a motivation to choose one lender over another on the broker side. Some lenders are very hard to work with, and we take that annoyance away from you. When you think about the commission, think about it this way "hey if I don't nickel and dime my broker, he's going to go above and beyond to find me a great loan that fits my needs." You could very well go to a retail bank and do it yourself but you are trusting a broker that is motivated and has the resources to find you a great deal.

I can't speak for all mortgage brokers because there are some that won't give you the full story but that's why there's many to choose from!