Choosing A Mortgage Bank or Portland Mortgage Broker
Important factors to consider:
- Time frame to close
- Now working for both mortgage brokers and mortgage banks i can tell you it really comes down to the process, the technology, and the operations back end of any organization. In my experience a company needs to be of a certain size and stature to be able to have multiple underwriters, funders, doc drawers, processors, etc.
- If you are working with a small broker shop and your loan officer gets sick and is not at work your file could will be sitting.
- When a bank actually banks its own money they typically have the processes down as they know their risk tolerance and what they are willing to accept.
- The price of money
- Brokers sell their mortgage loans to mortgage banks. So when you Portland Mortgage Brokerage orginates your mortgage loan they plan on selling the servicing of that mortgage loan, The mortgage broker acts as a middle man between the banks and the clients.
- Banks can have more attractive interest rates are some are more concerned with holding large deposits, high interest credit cards, business relationships and more, so they may offer lower rates.
- The interest rate
- Interest rates can vary from bank to brokerage across the board. Working with a reputable outfit and working with people that are more consumer focused instead of greed focused will help you achieve a better interest rate. If you talk to 3-5 different mortgage lenders, banks, credit unions, etc you will get a different price point on each one. That institution may work with different money channels, or investors for certain products, etc. Whether choosing a mortgage bank or a mortgage broker ensure you check around to ensure you are getting the best scenario to meet your individual needs.
- The availability to funds
- Broker shops are know to have multiple investors. Tradition banks like the big 4 may only want to bank their own money. But smaller more nimble banks are starting to work more like brokers by setting up broker and correspondent relationships with many different loan investors.
- The availability to Non-QM products
- This day in age not everyone fits into the box for conventional and FHA lending. Loan guidelines change constantly, but when there is not a normal option there are Non-QM Mortgage products that can help individuals achieve the dream of homeownership or allow a person to refinance to a more favorable interest rate. Bank Statement Products, Stated Income, No Income and other types of loans would fall into this category. Our bank has over 7 different Non-QM Investors for those folks that don’t fit into the traditional box.
- Does the company or loan officers work on the weekends
- Most banks have schedules from 8-5 but now days the mortgage loan officers even at banks are available 24-7. Our loan officers have some of their very best production days and contact times after 5PM and saturdays are an amazing day to help people secure homes. If you do choose to work with a mortgage bank make sure your loan officer will be available on the weekends incase you need to adjust your officer letter or approval on a Saturday or Sunday.
- The availability to grant products, DPA’s, and products
- Alot of different down payment programs and grant products requite the Broker or Bank to underwrite their own loans. Smaller mom and pop broker shops typically will have the purchasing investor underwrite their files so these shops can never get down payment assistant loans, bond programs, and other niche local products. Many larger banks also wont underwrite or originate these products.
In conclusion- I’d say id most defiantly perfect working for a smaller bank that is ran more like a mortgage company instead of like the big 4 banks. The company definitely needs to underwrite its own files and they need to have technology and compliance to keep our clients safeguarded. Working with a company like Wise Capital Mortgage you get the best of both worlds. You get the backing of a Inc Top 5000 Bank, but the small town feel and help of a local mortgage team. Wise Capital has a number of underwriters on staff and we have over 40 different mortgage investors. Most of our relationships are correspondent but we also have a number of different distinct broker channels for specialty products. Wise Capital is just the right size as well, not too small and not too big, every client’s files are handled with the utmost professionalism and care.