With the advent of the on line loan application combined with the fact that most home buyers have less time to meet mortgage professional then ever, one begins to ask the question: Are loan officers even necessary in the current market at all?
Faced with the current credit crunch, many banks are cutting back in ways that don't make buying real estate any easier. Many Wholesale Account executive Loan officers are being let go from major institutional lenders like Bank of America. Entire divisions are being closed across the country in an effort to both squeeze out the mortgage broker and capture more retail business.
This is not good for the consumer. The more options the borrower has, the better off he will be. By cutting out the wholesale lending divisions of the banks, the boards of many banks feel that they will force the public to walk into the depository branches of their institutions to procure financing and take loan applications. Even though the wholesale divisions are historically more profitable then the retail divisions of institutional lenders, "Damn the torpedoes and close off the wholesale department immediately!" seems to be the current battle cry of the corporate banking elites...
Being involved with both ends of the real estate business for over fifteen years I would like to use this great platform to make a few honest and sincere observations:
1. Loan officers can shore up a deal. When there is weakness in a transaction, just call in a lending pro that can assume the position of financial doctor and, " heal the deal." That is, determine where treatment or attention is needed and the apply the necessary tools to get the job done.
2. A mortgage pro will meet help home buyers after normal banking hours. That is right, mortgage brokers work after hours and often come to the home at the convenience of the borrowers work schedule. I have often been at a client's house discussing mortgage options at 9:00 PM, whatever is necessary will be done to close a transaction as seamlessly as possible.
3. Mortgage Brokers have much more of a variety of loans available to choose from. Most mortgage companies work with at least a dozen banks consistently. This allows for much more variety for the consumer to find the program that is going to match the borrower best.
4. Paying for an experienced mortgage professional is much less expensive then getting stuck with the wrong program because you tried to save money on line. Ultimately it comes down to customer service and completely satisfying the client. By using a reputable lender, a borrower can save hundreds of dollars a month in simple maneuvers like avoiding PMI insurance by breaking up a home purchase into several parts like acquiring an 80-10-10 loan. Just one simple solution that can save the borrower thousands of dollars a year in actual payments.
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