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When banks are out of "Control".

By
Mortgage and Lending with Franklin Loan Center

Ok, so you have saved some money for a down payment, your credit is in good order, and you have a good income history.  You are ready to go to the bank for a mortgage right?  Well, that may not be in your best interest.  Consumers have learned a lot about mortgages and the business of mortgages in recent past.  I'll be honest, unless you own your own company you probably don't know much about it because what was the case 6 months ago is completely different today. So listen up....

Once you get a mortgage it really doesn't matter which bank you are with.  If you can pay the monthly payment does it matter that it's Chase, or Wells Fargo, or B of A? For most people the answer is no. So what does matter.  Well there is the obvious answer of rate and costs.  The industry has blown this smoke in the consumers face for years and won't allow you to see the other things that matter when choosing who to get your mortgage from. The number one issue in a mortgage is CONTROL.  Who controls the process when you are getting your loan?  When you sit down with a loan officer at a big bank he lives in your town and he's the "face" of the bank.  But is he the only person involved in your loan?  Absolutely not. There are probably no less than 4 other people that work for the bank that have their hands in your loan and dictate how fast your loan moves through the process. As Joe Consumer you wouldn't know this because the only thing the advertisments tell you about are the Rate and Costs. So how do you know any better. Well no matter where you go these same 4 people are going to be involved with you loan, but where is their desk? Chances are if you go to a big bank your Loan Officer is in your home town, but his processor is in one city, and the underwriter is in another. Then the doc drawer is in another and finally the funder is in another. So you always asked why does it take a bank so long to complete your loan?  Well at a big bank over 1/2 the time is spent sending your file to all these different cities.  It saves the big banks money by "centralizing" the process. 

So what are your options?  Look for a correspondent bank.  These are banks that sell their loans to the big banks.  After all is said and done your loan is going to end up with a big bank anyway, so they'll get your business.  Ask your loan officer if the underwriter is "onsite" or if they are in a different city.  Typically at a correspondent bank they have their staff in the same location and the loan officer has "CONTROL" of your loan because he can walk right into the office of the processor, underwriter, doc drawer, and funder and get them to look at your file, not just leave a message because they chose not to pick up the phone.  If you are in a different location as a loan officer you are out of control.