Quote:
Originally Posted by BlueHair
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%.
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If several thousand dollars = a few bucks to you, then you are right. If not, I can show you multiple settlement statements where I paid 1/2 point in closing costs (including yield spread) for my loan.
As for realtors, I was in the business for a short time while I finished school at BYU. The typical realtor would never spend more than $500 on advertising and usually less than $200. Realtors know that the MLS sells your property. Advertising is usually done as an investment to propspect for new clients.