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Originally Posted by TangerineDream
Also keep in mind that the gov't is working on ridding us of these types of lenders (ie brokers / correspondant lenders) unless they are above board and backed by a traditional bank, so soon you won't have to worry about this.
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To go on a tangent a bit, the thing about the gubment and banks wanting to cut out brokers and alternative lenders makes me a bit ill. I did a research paper on this in college. You'd be surprised, but probably not, at what they're up to. The banks are behind it all, wanting a monopoly on lending but won't, or can't, do it by offering better goods/services. They want it to be legislated in their favor. Getting rid of a broker who basically gets paid by "kickbacks" of sorts, means the banks get a bit less to get the business. So if they can get rid of that middleman...
Also, the banks want to act as if it's in YOUR best interest to get rid of alternative financing, aka payday loans, stuff like that, but it's really not. The need for alternative financing is there because banks won't lend to those who use other means. And this cuts out YOUR freedom of choices as a consumer. Big banks suck. Plain and simple. Whichever you choose, make sure you know the terms of the agreement before you sign. As long as you know the score, you have control.
If you can get something done through your Credit Union or other means, do so. If you can avoid dealing with the bank initially, you'll likely be further ahead. I've used a lending broker both of the last two times and they've got me a better deal than my own friggin' bank would do. Sure, some major bank usually buys your contract later as you have no control over that, but they have to do it at existing terms. So ours ended up with Chase, but when I asked Chase to begin with, their rates sucked. Unless you got someone working on the inside at a bank to help you out in getting the best the bank has to offer, that'd be the last place I would go for a loan.
But it pays to shop around. FICO knows if you're grouping inquiries to mortgage companies. So don't worry too much about the FICO score hit you take if you research loan rates for a couple of weeks, it won't be much of one as they count it as one.