Your Broker May Not Know Until the End Who Will Ultimately Be Your Lender.

Another reason mortgage brokers won't tell you the name of the lender is that they haven't yet decided where your loan is going to go. So far, no big deal. If you haven't decided to lock in your loan, then the broker won't know who your lender will eventually be. But she'll have a pretty good idea because she will use only a handful of lenders on a regular basis, not the hundreds she may be authorized to do business with.

"Your loan will probably go to XZ Bank, 123 Bank, or ABC Lending Company, but I haven't decided which," says your broker. That's the answer you want to hear.

If You Locked in a Rate and Your Broker Can't Tell You Who the Lender Is, He's Lying.

On the other hand, if in fact you have locked in your rate, but your broker hasn't told you who the lender is, then there's a problem, and it's one that you need to watch out for. Of course, this could be a symptom of the first type of paranoia: The broker doesn't want you to go directly to the lender.

More likely, you have locked in the rate with the mortgage broker, but the broker hasn't officially locked you in with the wholesale lender. We'll discuss rate lock tricks in greater detail in Chapter 5, but if this happens to you, then you need to prepare yourself and ask some direct questions.

"Mr. Mortgage Broker, I would like to lock in today at 5.00 percent."

"Great!" says the broker. "I'll lock you in right after we get off the phone!"

A couple of days later, you call your broker to confirm your lock. "Rates have gone up since we last spoke. You locked me in at 5.00 percent like I asked, right?"

"Yes, you're locked in at 5.00 percent." "Great, thanks. Who is my lender?" "Urn . . ." (Uh-oh.)

Guess what? I'll bet you a fresh doughnut that you're not locked in. It's likely that your broker either forgot to lock you in or told you that you were locked in but decided to "play the market" (discussed in detail in Chapter 5), and now the rate is nowhere to be found. The broker is hoping that rates will come back down so that he can lock you in.

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