I am working with an A list Buyer who insisted on going to her Bank because it was down the street from her house and convenient.....the Bank (which I will not name) is one of the largest and my history with them closing on time and efficiently has not been good. But I obey and go with my customer through the underwriting process etc. My preference was a Mortgage Broker with an unflappable track record, but she thought differently, after all this is the bank she goes to all the time. (Even thou the underwriting process is taking place in an unnamed state)
Now the loan officer made a lot of promises to my client, a promise to close in 30 days, a promise to communicate, a interest rate promise (which was used to lure her in) blah, blah, blah. As Realtors we know better and many clients use their Realtorsknowledge and expertise to avoid anguish or missteps that can occur during the process of buying a house......these days (after 2008 bank collapses) the mortgage process can either be a good or bad experience. The week before we were suppose to close, I find out that there was a big oops! It appeared that their was an oversight on the buyers tax return, showing a loss of a business by her husband (whom she was divorcing). Her husband had thoughtfully put her name as a 5% share holder and so she must share in the losses causing her debt ratio to go down. She was denied.....meanwhile the Loan Officer is calling me with many suspicions about my client (is it fraud? is she trying to buy a second home because her present home is in foreclosure, oh my!) I was appalled at her suggestions.
Immediately I go into survival mode....we contact the Mortgage Broker I originally wanted my buyer to go with and guess what he found.......a second income that was omitted by the Mortgage Banker. Tsk, tsk, all that stress for nothing.
Many Mortgage Bankers are hired by banks with no test requirements (because they are a Bank!), work on salary, while Mortgage Brokers are licensed, paid on commissions and have lots of skin in the game. I ask you....Mortgage Banker or Mortgage Broker?