While some may think it logical to submit two mortgage applications and then the mortgage broker or the loan officer with the best terms at the end wins, it really isn’t fair or logical. Double dipping when it comes to charging items on your credit card while earning air miles and hotel points may be fair, but making two mortgage brokers work for one loan definitely is not.
When a mortgage application is submitted to a mortgage broker or loan officer, along with your supporting documentation, half of their work is already done. Keep in mind that these individuals usually work on commission, so if the loan doesn’t close then they do not get paid. And just because your loan doesn’t close certainly doesn’t mean that they haven’t already spent money by working on your application. They definitely have spent both time and money by working on your loan.
You would never hire two maids to clean your house and then only pay the one that did the better job. To be fair and equitable, you would have to pay both maids because both maids have done what they were hired to do, which is clean your house. So in the same light, you shouldn’t hire two mortgage brokers or two loan officers to do a job and then only pay one either.
It also isn’t a very logical approach to submit two different loan applications either. In mortgage circles, especially when you are talking about the same location, mortgage brokers tend to submit their loan packages to the same lending institutions for consideration. So just because you think that you are playing two mortgage brokers against each other, you may be coming away with the same results anyway. This reality makes it even more unfair to the individuals and lenders involved. The only way that the broker would be able to win your business in the end would be to forfeit the commission altogether and then he or she has worked for nothing anyway. Does that really seem fair? Canadian funding corporation lets you choose read more about this
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