Mortgage broker v. Bank… what’s the risk?
My husband & I were planning to buy a house. He prequalified himself to a credit union bank. A friend of mine has a mortgage broker/real state agent relative. We were planning to talk to him about the houses, but i’m sure he will convince us getting a mortgage loan on his behalf. We know that he could possibly can give us a good deal, but my husband’s concern is: “WHAT IF THE MORTGAGE COMPANY (BROKER) SHUT DOWN?” He said that if this happens, our loan will be sold to other lenders that may end us up paying more or higher interest rate. I don’t know what to say coz I’m not familiar with this kind of situation, but as far as I know, the mortgage broker deals with the banks as lenders. The case above can only happens if the bank itself got sold with other companies even if the mortgage broker’s company shut down. Am I right or wrong? Can someone who is knowledgeable regarding this matter…. please explain. Thanks?
Sorry if you got confused. It is not my friend who is going to convince us about getting a mortgage on his behalf. It is the mortgage broker itself. It is ok for us to choose the motrgage broker, if he will give us good deal, instead the bank? What abouit my husband’s concern… is it true?