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To: Ilaine who wrote (62)	2/19/2001 10:44:11 PM
From: Shoot1st	Read Replies (1) \| Respond to of 6901

a bank is more likely not to hide fees quite as well as a broker and some brokers are notorious for calling just before the closing and saying ....this will cost a little more than we expected....you see, what are called good faith estimates are not considered firm numbers. I've seen them under estimated by thousands of dollars. the broker can also adjust the rate depending upon how bad he wants to make the loan. Banks are relatively fixed. Brokers also make large commissions on sub-prime loans. If they think you are going to be sub-prime they have a tendency not to bother telling you until you're wrapped up in the home and the loan deeply. When your emotions are running high, you are a likely target for abuse. Shootie

To: Ilaine who wrote (62)	2/20/2001 9:30:11 AM
From: Don Pueblo	Respond to of 6901

Simply stated, you are dealing with either a "direct lender" (the term that is used) or a broker. A direct lender lends his own money. A broker sets up a loan with a lender, which may or may not be a direct lender. There are all different kinds of direct lenders, some only with people with good credit, some deal with anybody, some deal with bad credit risks. There are different kinds of banks. The top tier consists of actual banks, next tier is the savings and loan institutions, and below that are various other lending institutions. The bottom tier consists of lenders (direct and brokers) that handle people with credit problems. As a general rule of thumb, you would want to deal with a direct lender if you can, because as a general rule, there is no broker, therefore no broker to be paid his cut. You want to deal with the best lender you can find that will make the loan.