Mortgage broker? Who helps you with your loan in Sonoma County really makes a difference
People use the term mortgage broker as a sort of umbrella term for what I do. In reality there are 3 different types of credit institutions available to consumers and I thought I would just like to tell you what they are and how they work.
First of all let me tell you most of the loans join today Fannie Mae and Freddie mac guidelines because once the loan is granted, it is then sold to National Federal Mortgage Association FNMA or Federal Home Loan Mortgage Corporation FHLMC. * These entities do not collect “service” payments or loans, they simply help mortgage lenders stay liquid so they can continue to lend. So the bottom line is that we all basically do the same thing, just in a little different way.
* Fannie Mae represents the National Federal Mortgage Association. Freddie Mac is the Federal Mortgage Corporation. For example, Fannie Mae buys mortgages from large retail banks while Freddie Mac buys them from smaller savings banks. But both help banks make more loans and keep interest rates low
BANKS – You can go to any bank where you have a checking account and they can offer you a home loan. Big banks like Wells Fargo or Chase or Bank of America will usually repay the loans after they have sold them and so that they remain tied to the borrower. You can work with someone right at the branch and they usually start a loan and it goes to someone at a centralized processing center. It seems to me like a kind of self-service system and can work well if you know what you want and don’t need an advisor. If you work with a small regional or local bank you will likely get better service and often these small banks have options that they underwrite and keep on the books which we call wallet loans for you if you don’t fit everything. box.
then, we have Direct non-depository lenders that’s who I am now. Basically we are mortgage bankers and we act like the banks, but all we do are mortgages. We don’t have checking accounts or cashiers, and you usually get a mortgage advisor to help you from start to finish.
Then comes the Mortgage broker and what brokers do is very similar to a direct lender, but they put the loan together and send it to a bank or direct lender to secure, approve, and fund the loan. Brokers get wholesale prices and charge a fee for their services, so there is no additional charge for their services.
I have been in the mortgage business for over 28 years. The first 16 years I worked as a mortgage broker. For the past 12 years, I have been a mortgage banker or direct lender with the ability to negotiate loans. I’m telling you this just to let you know how I see this process.
I have the impression that the consumer ends up with a very similar end product, but the process can be very different. I’m sure I’m biased in this area, but I think the key to a good mortgage in the context of healthy, balanced financial health is having a good mortgage advisor.
Have a nice day and have fun!
Need to know more? Please send me your questions related to real estate and mortgages. I am happy to answer you and it could become the subject of a future article.
Hans bruhner (NMLS 243484) is a mortgage advisor for Finance of America mortgage (NMLS 1071). Both are licensed by the Department of Business Oversight under the CRMLA. If you have a question, please contact Hans at (707) 887-1275 or [email protected]