Gilgamesh

My wife and I are buying a home. Time to get out of our condo.

The agent we are working with is an old family acquaintance, he was a customer of our business when he worked at a local bakery. The problem is, I cannot find anything out about the mortgage company his office uses. No google results on the company name or phone number. What are my resources in researching this company?

The company name is New Community Mortgage Group
ph. 801-860-9233
ph. 801-565-7409
fax 801-565-1188

philly fresh

dont know much about morgages or how to research them but i would start with references.

spdy0001

Are you required to use this mortgage company?

I would shop around with some of the larger companies. They are generally more stable and you won't have to worry about your mortgage being bought and sold.

Gilgamesh

^ This is a brokerage firm, we'll be getting the loan through a bank.

AS3.0CL

better business bureau would be good. find the cooperate website though and see what their all about it, try also finding their own website if you can.


i'm a lender, PM me is you want info...

JaredGMS

Just check with the state and make sure they are properly licensed.

dallison

there was a local co that went bankrupt and screwed a lot of people

Will Y.

You can check with the state agency that regulates the brokers in the brokerage firm. In CA, the Dept of Real Estate regulates the brokers.

Since the brokerage is going to a bank, you just need to know how much the exact loan would cost through the bank itself to determine if you're getting a decent deal- ask about any fees charged by the broker above those charged by the bank. A mortgage broker may charge points on the loan, but can check different banks for the best deal.

G/L.

Gilgamesh

We're being charged 500 flat.

The reason I ask, is that there was a company here that went bankrupt and its costing people their house, they were making payments that never got where they needed to be...

moeronn

Bottom line is if you don't feel comfortable using them, then don't. He's an aquaintance? So what? It's not worth the uneasy feeling of using someone you don't have complete confidence in. I'm sure you have plenty of aquaintences and if he can't understand your hesitation in using an unknown mortgage company, then you don't want him as your broker.

Will Y.

Are you talking about a mortgage broker or a mortgage servicing company?

A mortgage broker packages the loan, is paid once the loan is funded and is never involved with the payments on the property.

The servicing company is chosen by the lender to receive payments and forward them to the lender/bank. If you know the bank issuing the loan, you can find out which servicing company it uses. Is your lender using New Community Mortgage Group?

Gilgamesh

I see, I did not know the difference, or that there was one. They are a broker, and I'll be paying a bank (just found that out today)

Street Spirit

Meh. For $500, do your own research into who has the best rate right now. IMO, that seems like a lot of money for someone to basically just do your homework for you. That money can be put towards the downpayment, furniture, stuff for the house, etc. instead.

stogie1020

You can also check their Dunn and Bradstreet. (did I spell that right?)

Will Y.

and

Then you won't lose any money if the broker goes under-- the broker only gets paid at the close of escrow by the escrow company, which distributes payments of various entities involved in the transaction and records documents securing the loan with the county.
If the loan doesn't close, no money is distributed and you don't owe any money.

moeronn

It depends. A lot of times a broker can get you a better rate than you can get yourself from a bank. Unless you find a good deal from an online lender.

Gilgamesh

^ Yeah, he saved me almost 1% over local banks. This loan will be temporary, it'll be a 1 year ARM, we'll refinance as soon as our condo sells, and then we can/will use our equity from that to take the loan amount on the house way down.

moeronn

^^ Good luck selling your condo. I know the market out there was still doing fairly well, but recently started slowing down.

Gilgamesh

Thanks, another unit like ours sold in about 45 days, so we're not too bad yet. Being located in downtown SLC helps, what with new condos at about 700 sf selling for 250k...asking 165 or so for ours is not too ridiculous.