Selecting a mortgage company Part 1 of 4 What do mortgage brokers do?

By
Mortgage and Lending with Waterstone Mortgage NMLS#186434 NMLS# 274129
https://activerain.com/droplet/4jv6

How to select a mortgage companyWhen it comes to choosing a mortgage company that you are going to choose its important to know who you are working with.

A mortgage broker is usually an in-between company that has a contract with other mortgage lenders that agrees to pay them a fixed percentage on any loan that closes through their company.

In this scenario a borrower/client meets with the mortgage broker,  provides documents and the loan originator discusses the programs, rates, fees etc...  for the particular lender that best suits the clients needs. Assuming that the client qualifies, the Loan Originator sends the file to his/her loan processor and the file usually goes to the third party investor in underwrite the loan and condition for items needed for final approval.

Once a final approval is made the Third Party investor and the mortgage broker works with the title company to get necessary documents to the closing table and the Third Party Investor distributes the funds for the closing.

Sounds pretty good, right? Well maybe not. The problem with using a mortgage broker is that you will have a third party doing much of the work on your loan and they will be the one that ultimately determines whether or not you are approved. Often the communication between the loan originator and the third party lender is restricted and things move at a much slower pace.

 

Its difficult to get answers and the mortgage broker has virtually no control at all of how your process goes once the loan is sent to third party all they way up unto the closing. Broker deals have a higher decline rate and a much longer closing time than some of the other options we will talk about in parts 2-4.

There is a better way. Stay tuned for Part 2 coming soon, and yes I will be saving the best.... part 4 for last.  

 

All The best!

 

Shawn

 

Shawn Gerhardson with Waterstone Mortgage Waterstone Mortgage Gerhardson Team

 

About the Author

Shawn Gerhardson (NMLS #274129) is an active loan officer with Waterstone Mortgage. Email Shawn directly atsgerhardson@waterstonemortgage.com, call at 763-691-0202 or click to get a free, no-obligation rate quote. You can also find Shawn on Twitter @Mortgageg and on Facebook Specialties: Purchase, Refinance, Debt Consolidation, Conventional, USDA Rural Housing, FHA,VA and MHFA Loans. Credit Repair, Relationship Networking, Direct experience with starting a networking group from the ground up.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Minnesota Isanti County
Groups:
Active Rain Newbies
Tags:
mortgage brokers
home loans
shawn gerhardson
waterstone mortgage
selecting a mortgage company

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
798,169
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

What a great blog series.  Important information to share.  I just got with my mortgage guy today to do a video series about the mortgage business.

Jun 24, 2014 05:25 AM #1
Rainmaker
213,322
Shawn Gerhardson
Waterstone Mortgage NMLS#186434 - Cambridge, MN
Top Rated Mortgage Professional

Awesome. Thanks Cindy. I'm looking at getting in to video blogs soon as well. I hear they are very effective. BTW If your guy in TN gets too busy, I am able to loans there too. :) 

Jun 25, 2014 06:19 AM #2
Rainer
4,929
Collette Deschamps
Windermere Missoula Real Estate - Missoula, MT

Thank you for this series. I'm very new to the business and anything on the lending/mortgage side is a bit greek to me since I've never had a mortgage. I look forward to the rest of your info. :) 

Jun 26, 2014 01:01 AM #3
Rainmaker
213,322
Shawn Gerhardson
Waterstone Mortgage NMLS#186434 - Cambridge, MN
Top Rated Mortgage Professional

Thanks Collette. Top qualities to look for in an Loan Officer.

1. Honesty

2. Availability

3. Knowledge

4. Experience

5. Integrity

6. Follow up

Everyone claims to have the best rates and programs, but of course that cannot be true. Find a good Loan Officer to refer to and the rest will follow becuase great loan officers work for great mortgage companies. 

 

Jun 26, 2014 06:25 AM #4
Rainer
4,929
Collette Deschamps
Windermere Missoula Real Estate - Missoula, MT

Thanks Shawn. I'll keep that list in mind which should be easy because these are all traits that an agent should have as well. Do you think it's advisable to ask around my agency for recommendations or get out to more Meet and Greats and find my own? 

Jun 27, 2014 02:55 AM #5
Rainmaker
108,749
Brian Olsen
Portland, Lake Oswego, West Linn & Dunthorpe Neighborhoods, Waterfront, Luxury & Floating Homes - Lake Oswego, OR
Cooper Jacobs Real Estate Group | Keller Williams

Great BLOG Shawn. I was a mortgage broker before getting licensed as a real estate broker and have many great stories to share regarding that side of the industry. Please let me know folks if you have any questions on lending from a realtors perspective. 

Thanks...have a great weekend!

Jun 27, 2014 12:59 PM #6
Anonymous
Lauren Bond

Nice review.
mortgage broker wisconsin.

Jul 07, 2014 08:37 PM #7
Anonymous
AvelineTorres

I honestly appreciate your blog. You went with great post.
http://www.thompsonkane.com/

Jun 15, 2015 04:29 PM #8
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
213,322

Shawn Gerhardson

Top Rated Mortgage Professional
Ask me a question
*
*
*
*
Spam prevention

Additional Information