Quote:
Originally Posted by jay santos
5. Yield spread. This is the main thing to understand. Not publicizing yield spread is the reason loan officers can dupe consumers and make $5K on a loan they spend eight hours on.
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Brokers are required to list the yield spread on the Settlement Statements. Correspondent lenders are not required to disclose yield spread. Getting a home loan is like buying a car, you are going to pay one way or the other. If they advertise no closing costs, you can be sure they are making up the money on the rate. Shopping around for the hungry loan officer may save you a few bucks, but not much.
Realtors are definitely worth the 3% commission. If you are the buyer, you don't have to pay anything. Sellers don't realize how much money realtors spend on their behalf advertising. Sure, you could do for sale by owner, but unless you really know what you are doing, you could end up spending a lot more than 3%.