The Mortgage Brokers job – Loan Origination Hurtles

The difference between Mortgage Banker companies or Mortgage Brokers and a Direct Lenders.

Well, here is the difference, and the effect it has on obtaining mortgages.

First of all, Sellens Real Estate Lending is a California Department of Real Estate Mortgage Broker, with a NMLS Loan originator Endorsement.

The Mortgage Brokers job - The Loan Origination ProcessWe are contracted to be Wholesalers Lenders of home mortgages and other loan programs, for a great many lenders and investors.

These companies offer Wholesale loan pricing to their mortgage brokers who are extensions of their sales force.

Most people want to know if they pay more for real estate loans when they go to mortgage companies or a mortgage broker. The answer is no. And that is for sure! It is like a travel agent.

You don’t pay more to the travel agent because, they get wholesale prices for your tickets. If you bought straight from the air lines, your tickets would be retail. And, most importantly, they know where the best deals are.

It is the same in the real estate loan business. The mortgage broker knows where the best priced loans are and who makes the “niche” loans that so many people need.

In our business a “niche” loan is a specialty loan that is not available with most funding lenders. It is the business of mortgage companies to find out about these special loans.

When you complete a loan application with Sellens Real Estate Lending or another California Mortgage Broker, you have acquired the power of submitting your loan to many lenders.

You never have to fill out more basic paperwork, the mortgage loan broker just sends your paperwork to different investors until your loan is approved.

Now, when people ask you, what does a mortgage company do, you can tell them.  Compare working through a mortgage broker to working with a big direct lender like Bank of America.

For instance, if you complete the loan application for Bank of America, they try to match your application with loan programs that they offer, matching your income and debt situation.

If they can’t find a match, and often this is the case, they deny your home loan and send you on your way, to begin again supplying the same information you gave to Bank of America, to the new lender.

The difficulty is, that when you deal with entry level personel, at a large bank, that person is taught to take applications from anyone.

The actually evaluation of the loan application, is not done until later down the road. Perhaps even allowing a month to pass before you are told “No Loan.”

The Mortgage Brokers job - The Loan Origination ProcessToday, when lending programs are generally limited, most national lenders don’t provide too many loan programs.

Large institutional lenders don’t usually offer anything for the “challenged credit” borrower, or a borrower that needs a loan on a manufactured home or mobile home.

In addition, even though a standard program is available, the mortgage banker (funding lender), maintains the last say-so as to whether or not his company will fund the program.

It’s like selling groceries and deciding not to carry a certain product. Certainly, the standard program lenders don’t offer equity loans.

The result is, you begin again, from scratch, and usually have to get a new appraisal because one lender won’t use the same appraisal as another lender. They usually want their own.

You never have more basic papers to fill out.

One loan turn down does not mean your loan search stops, it just means the mortgage loan originator attempts to find another home mortgage loan for you with a different lender/investor.

Please contact us if you have questions we might answer.

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