on May 12th, 2009Realtors Need Private Mortgage Bankers
Should Realtors partner with Banks, Credit Unions, Brokers or Private Mortgage Bankers? Who should they refer their buyers to? As with everything else in a complex world, there are advantages and disadvantages to all entities providing products and services and that’s no different in the mortgage world. Banks and Lenders have certain products that meet Fannie and Freddie Conventional lending guidelines and HUD/FHA/VA for government loans referred to as Govies. On any given day, bank rates are not competitive. Credit Unions generally have good rates but their portfolio of products tends to be limited. Brokers have the distinct advantage of brokering with various lenders to get the best rates and terms, but brokers have no control over the process and that can ultimately result in delayed closings. And finally, Private Mortgage Bankers have the best of all mortgage worlds. Why is that? Well, simply because they can do what all the other lending entities do under ONE umbrella. Typically, a Private Mortgage Banker, just like the banks and credit unions, has warehouse lines to fund their loans and just like the banks sell the loans shortly after closing to one of those investors. In addition, a Private Mortgage Banker, has the flexibility to broker out with a number of wholesalers if any of them has a better rate or a niche product the borrower needs.
So to all of you Realtors, partner up with a Private Mortgage Banker for the best rates and the most products available to your buyers!!