All Forum Posts by: Jose Leandro Gobea

Jose - you really need to show a bank you can save, not just borrow.  Not only that, but an all debt deal is just a terrible idea for a first timer as it won’t cash flow with today’s rates and the first unexpected expense slams you into begging mode.

Save, save, save.  Learn to put away money each month to save for a down payment.  Maybe go into a deal with others but if you don’t have the cash to become an equal partner it is going to cost you in a lot of sweat equity and frustration.

@Jose Leandro Gobea, I am in Miami. I used to be a lender, but now am a broker for obvious reasons. A current client was recently working with a mortgage lender and was being offered a 7.5% interest rate, I was able to offer them a 6.99% interest rate with less closing costs. People think working directly with a lender is a good idea, they just haven't met a good mortgage broker to find them the best deal. Someone stating that you are paying more by working with a broker versus a lender clearly does not know what their talking about. Regardless of whether you are a lender or a broker, we all get paid the same exact way. So it's just a matter of who wants to give their client the best deal at the end of the day.

@Jose Leandro Gobea

Oh, also comes to mind that I don't need to pay the broker fee/points.  I'd rather just go to a lender and pay the flat fee.  Even with my finances, they aren't that complicated that my lender can't give me competitive terms.  Granted, I've only done conforming loans.

From my clients and some of my own experience, rate shopping conforming loans is somehwat silly since you might be gettinga  1/8% better, but at a tradeoff.  For example, one of the ones lenders "trade" off is the rate lock.  The length of the lock changes the price...  Once client was so happy he got a great rate, but he locked the rate for only 2 weeks.  But, we were only attorney review so we couldn't close in 2 weeks.  More wasted money.

Yes, I know some lenders especially in the past several years would like to have the business, but with rate shoppers sometimes they can't put the time into getting the "best" terms since they've had so much business going on.  Rather close the certain deals/customers than the "tire kickers."  Lets face it --- that's just plain business for any commissioned person.  So, how does that help you to shop around??

Anyway, I have my own experiences / opinions on this topic.  Good luck.

Hey Jose, I think working with multiple brokers at one time is not a bad idea. Either way, you're only paying the broker that gets the deal closed. Although, by using a broker, you are paying more versus finding a direct lender. 
If you decide that you want to go directly to a lender, it shouldn't be hard to find one. You could make a post on BiggerPockets, call your local lenders, or even use social media. 

I hope this helps!

I think the more important question to ask is how are you finding this property? Are you discussing properties that are listed on the MLS? Or properties being sourced off-market?

If the property is sourced from the MLS, then the listing agreement that is already predetermined by the Seller and Listing Agent already outlines if, and how much the Buyer's Agent is being paid here in Florida. Though not mandatory, it is most common for the Seller and Listing Agent to already have it outlined in the MLS that they will be paying the Buyer's Agent, which is included in the Seller's closing costs. So regardless if they are doing 100% owner financing, or if they are only holding a second like 15-20% as you mentioned, the Seller would still pay your Agent their commission IF the MLS indicates so...which your Agent will already know up front by the MLS listing. But, if they are not offering any commission to the Cooperating Broker (Your Buyer's Agent), then yes, you would have to pay your Buyer's Agent yourself...but again this would be known immediately by your Agent looking at the MLS listing for the property so you can make that call ahead of time.

Otherwise, if this is an off-market deal, then yes it's all negotiable and as others have indicated, you would be responsible to pay your Buyer's Agent (also called the Selling Agent) as part of your closing costs.

@Jose Leandro Gobea

I think it depends on how you want to do business.  I value service over saving "a couple bucks."  The better service, e.g. building a repoire,  can save me more in the long run.

Remember, these lenders, whether its a direct lender or a broker, are still working on commission.  Of course they want your business.  So, if you ask them for a quote that's what they'll do.  But, if you stick with one, then I think you'll start getting the service --- yes you have to find "the good one."  Its the same with any field...

Especially as your finances get more complicated.  Sure, some investors keep shopping around for the "best deal," but then you have to keep "breaking in" new lenders...  I don't like treating much of any field/trade as some sort of disposal service...

Good luck.

Hi Jose,

Absolutely, not all brokers have the same lenders so I always recommend my clients get another quote--if I can't beat it, that's on me and I recommend they go with the other lender. Feel free to reach out with any questions! 

John 

@Jose Leandro Gobea-  check with several lenders on  their  options  before you get a property ...make a  decsion to proceed  with ONE and get  fully pre approved ...once you have an offer  accepted and need to lock rate - get some  quotes from your lender and several others - make a decsion on  locking and  move forward with one lender