Get A Loan with a Bank or a Mortgage Banker ?
A loan agent at a bank or a credit union is in most cases merely the front person of the company. The job of the loan agent is to receive the borrower’s loan application, and then give it to the underwriters.
In contrast, an independent loan originator will usually provide a greater service to the borrower, such as informing the client of the best loan product for their objectives, collecting supporting personal documents during the process for the loan processor, and interacting closely with underwriting to make certain that the loan closes.
What happens during the process with a bank loan officer?
All of the above duties are handled by the underwriting department in a large bank and usually borrower does not get any type of direct feedback from these departments since they are not the borrower’s direct representative. The main point to remember for the borrower is: Mortgage rates aren’t be much higher from an independent mortgage loan originator, whether it’s a broker or a mortgage banker than rates provided by using a large bank. In fact, because independent mortgage brokers commonly have multiple lending sources available, the rates are slightly lower as opposed to the big banks, which customarily have only a small number of loan products to give prospective homeowners.
Further comparisons will encompass fees. A written estimate of all the fees involved in the proposed transaction, should be given to the borrower and then evaluate the possibilities. Here’s an example: Lender A may come with $1,200 in underwriting and processing fees, while Lender B has zero fees, but if lender B has interest rates that are greater by .125%, it may be a mistake to choose the Lender with no fees.
Because most lenders have virtually the same rates, a consumer should pick their mortgage originator based on their sense of the loan officer’s experience and professionalism. Does the person reply to your questions in an easy to understand manner? Do they discuss all the options you have? Do they get back to you promptly via email or phone? Additionally, the part about “trusting your intuition” should be used: Does the loan originator come across as interested, concerned and friendly?
There’s also the scenario of picking a lender based on their rates , but then you come to find out they have few people who can take care of obstacles towards obtaining a loan approval. Today almost every loan is looked at under a microscope, so there are very few “cookie cutter” loans anymore. Each transaction has its own set of issues. If the lender’s “loan representatives” are actually employees at a call center, the chances of getting your loan closed drop considerably than with a lender whose loan agent has an NMLS license(s) and is registered.