By John R. Rapasky
With all of the changes in the lending industry, I thought I would write a blog on why you would want to work with a Counsel Mortgage broker. When I looked for a mortgage loan the first time I purchased a home, I did not know there were a variety of different options to get a mortgage loan. I went to a mortgage broker, and since then have obtained all of my loans through a mortgage broker. In this blog article, I will discuss the different options available to get a home loan, and why you would want to work with a Counsel Mortgage broker. As you can see from our website, the professional experience of the loan originators at Counsel Mortgage is unmatched in the industry.
Mortgage brokers provide consumers with a choice. Brokers have relationships with many lenders and are aware of their rates and products. The broker is able to obtain mortgage products and rates for you at wholesale, which typically result in lower rates and costs. If not for mortgage brokers, you would be left with going to different banks yourself, selecting from typically higher retail rates and costs, and trying to determine on your own which bank’s rates, costs, and products are best for you. A mortgage broker does this work for you.
Further, beginning July 1, 2010, Arizona loan originators who work for mortgage brokers must be licensed in order to originate your mortgage loan. The requirements for licensure can be found in our blog on loan originator licensing by clicking on this category in the right hand column.
LOAN OFFICERS WITH A BANK
Many people like to go to their bank for a loan and work with a loan officer. However, the products and rates at a bank are limited to only those offered by that bank. The rates are at retail, which are usually higher than wholesale. Furthermore, loan officers who work at a bank do not have to be licensed. Thus, by going directly to a bank, you have limited options and work with an unlicensed loan officer.
Another option is to work with a mortgage banker. Mortgage bankers typically have a relationship with a bank, and may also be able to broker loans. They market themselves as offering the convenience of a bank with on-site underwriting and funding for a quick close, plus the ability to broker outside of the mortgage bank to another lender. Nevertheless, in many instances, mortgage bankers work with their bank, rather than brokering the loan. One of the main reasons why this occurs is because bankers do not have to disclose their commission if the loan is sent to their bank.
Mortgage bankers sell their loans into the secondary market like every other entity. Thus, they will likely need to meet similar documentation requirements that would be required by a mortgage broker or loan officer. We, at Counsel Mortgage, actually have close relationships with lenders and underwriters and can underwrite or fund loans quickly, and in some instances more quickly, than a mortgage banker or bank. Furthermore, we do not have any ties to a bank and therefore are not compelled to send loans to one bank.
BROKERS MUST DISCLOSE COMMISSIONS, BANKERS DO NOT
The only loan originator that has to disclose their commission is the mortgage broker. Loan officers at a bank and mortgage bankers do not have to disclose their commissions for non-brokered loans. But, mortgage brokers, like every other entity in a real estate transaction, i.e. real estate agents, title companies, appraisers, etc., must disclose their commission. In fact, many mortgage brokers have recently become mortgage banks for the simple fact that they do not have to disclose their commission. You will know what the loan originators at Counsel Mortgage make on every transaction as we disclose our commissions.
WORK WITH A COUNSEL MORTGAGE BROKER
As described above, mortgage brokers provide choices for their customers to help them find those products that suit them. They must broker the loan, and do not have the option of keeping it in house to avoid disclosure of their commission. Further, they must search the market for the best product for their customers in order to be competitive. Counsel Mortgage originators work hard at customer service and educate our customers about the process to keep them informed of the transaction. You can see the experiences of some of our customers in the testimonials section of our website.
We look forward to the opportunity to work with you and to show you how we care about you and your loan. Please contact us and we will be happy to help you.
John Rapasky is the President of the Counsel Mortgage Group, LLC. You can learn about them atwww.counselmortgage.com. Copyright © 2010 Counsel Mortgage Group®, LLC
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