How Do You Choose Between a Mortgage Lender and a Bank for Your New Home, Investment Property, or Refinance?
The perilous waters are filled with sharks, whales, squids, and powerful forces that are far beyond your control. In fact, a quick look at the last 30 years of the mortgage industry would cause anyone to be wary, at the least, of the lenders who risk their capital to help you buy your property. The industry, rightly or wrongly, has been blamed for the 2007 economic collapse, and the banks have ponied up billions in reparations for bad behavior.
But your decisions are far more local and immediate. Undoubtedly if you have never sought a mortgage before or maybe only once or twice years ago, the very idea of signing a document filled with legal jargon that puts you on the hook for hundreds of thousands of dollars over 1/3 of your life is pretty daunting. But you want to buy that house or investment property, or you want to refinance the one you already own, so you need to shop for a mortgage. Are you better off with a bank loan officer or with a mortgage broker. Here are 17 reasons why you may think the latter is the better idea.
- The broker is your agent and works for you. The loan officer is the banks agent and works for the bank.
- The loan officer has a portfolio of loans that his bank offers and no other choices - the mortgage broker may have dozens of lenders available with a wide range of possible loan types and combinations.
- The loan officer has terms, and conditions with little or no wiggle room - the mortgage broker's portfolio of banks will have many different sets of terms and conditions.
- The loan officer has one underwriting team who will make a yes or no decision - the mortgage broker has a different underwriting team at every bank. He knows which ones are likely to accept your situation. A no is only a no until you try another bank in his portfolio.
- Because of the mortgage brokers wider experience, he is much more likely to be able to help you find ways to overcome obstacles due to credit history, inadequate evidence of income, or unique issues regarding the property itself.
- The mortgage broker works on commission and is only going to get paid when you get your deal. She is going to persevere to the end.
- A mortgage broker is an independent business. Their reputation is on the line with every transaction. The bank officer is concerned with the banks reputation, possibly, but their personal interest is best served by doing what is best for the bank.
- Mortgage brokers are much more likely to have a list of highly reputable professionals that have proven useful to him in other transactions: including real estate lawyers, tax reparation firms, real estate agents, credit repair services, and insurance providers.
- A good mortgage broker sees you as a client for life. Most loan officers are moving up the corporate ladder at the bank.
- You will almost certainly receive far more hand-holding and detailing of the process from a mortgage broker. Most are available at almost any hour, and will return calls quickly. If your mortgage broker is not readily available and responsive, change brokers.
- It is very likely that you can learn far more about a potential mortgage broker through online research and review sites than you can about a specific loan officer. The banks reputation may be searchable, but that doesn't speak to the individual you will be working with.
- You may end up paying the same or less with a mortgage broker, even for loans with the bank you had in mind. Many banks offer a discount to brokers that allows for this to happen.
- With a bank, you fill out the paperwork, go through the entire process, and if you get a no, you have to start all over again. With a mortgage broker, he merely moves on to another lender.
- You bank loan officer may have just been promoted from some other task in the local branch. Mortgage brokers get into the mortgage business, intending to make that their career. It is not a stepping stone from or to another position.
Are There No Advantages to Using a Bank Loan Officer for a Mortgage
The list is certainly not as long. If you love to shop and shop and shop, you might like to have four or five banks fighting for your loan. This would be especially true if your loan is a slam dunk.
You might already have done a loan, mortgage or otherwise, and have a relationship at the bank. This is more likely to be true at smaller banks. Knowing your history at the bank can help smooth the way.
Bill Rayman can be seen on dozens of YouTube Videos on his YouTube Channel. Decide for yourself if Bill's knowledge makes him the right choice for you. One you might really enjoy is:
Do I need 20% Down to Buy a Residence? Watch below.
New Contact Information for Bill Rayman
Bill Rayman Home Mortgage12121 Wilshire Blvd
LA CA 90025