By Admin on Jan 30, 2008 in Renting & Real Estate
mush182000 asked:
I am a first time home buyer, so please excuse my lack of understanding. The brokerage that owns the home (its a foreclosure), also has a mortgage arm. I was going to go through the mortgage arm through my realtor/close family friend, but arent there some potential cost savings if I proposed getting the mortgage through the company selling it. If it helps, the company name is era http://www.era.com/
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I am a first time home buyer, so please excuse my lack of understanding. The brokerage that owns the home (its a foreclosure), also has a mortgage arm. I was going to go through the mortgage arm through my realtor/close family friend, but arent there some potential cost savings if I proposed getting the mortgage through the company selling it. If it helps, the company name is era http://www.era.com/
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Many lenders won’t lend again on their REOs, for whatever reasons. You probably will have to obtain your own loan regardless.
godged | Feb 1, 2008 | Reply
It is perfectly fine to use the mortgage end of the company that is brokering it. Just make sure they follow whatever state mandated disclosure is required, which, in your case appears to have already been done.
Some people will chirp about a conflict of interest but I disagree. It is perfectly legal, and if the people are, in your judgement trustworthy professionals you ought to be fine.
There is no cost savings if you use the mortgage company that owns it in my experience. The REO arm of the lender has little to do with their origination department. The rates are the rates, and the closing costs are the closing costs.
Good luck
J. Philip Real Estate | Feb 4, 2008 | Reply