Just realized my realtor's recommended lender screwed me with a 7.2% rate while the credit union down the street offered 5.8%

I compared the loan estimate line by line after a friend told me to check, and the difference in origination fees alone was $3,400 plus a half point lower rate, so has anyone else had way better luck ignoring their agent's favorite lender?

3 comments

3 Comments

noahwood18h ago

That $3,400 difference in origination fees is exactly the kind of thing most people never catch. Did you notice if your realtor's lender padded the escrow account or included a mandatory fee for a rate lock that expired before closing? My buddy signed with his agent's guy last year and the lender slipped in a $1,200 "administrative processing fee" that wasn't even on the original loan estimate.

rose_clark8117h ago

Wait, a thousand two hundred dollar fee that just wasn't on the original paperwork?

thomasb4113h ago

Did your guy also try to sell you on how "smooth" the process would be if you just went with their person? I had almost the exact same thing happen two years ago. The lender my agent pushed gave me a 6.9% rate with a bunch of hidden junk fees like a $500 "underwriting fee" that magically appeared in the final disclosures. I switched to a local credit union three days before closing and got 5.2% with zero origination. My agent was mad but I saved like $15,000 over the life of the loan. It's crazy how often they push these lenders who are basically paying them a referral fee. Feels like everyone just assumes the agent's pick is the best deal.