The reason you may not be able to get that answer from a broker is that until you've committed to them and they've "locked in" pricing they probably won't know who will own the loan so they can't comment on a particular lender's policies. You could likely get those answers before closing, but not before committing to the process with them. And what if you don't like the answer you get? Then it is too late.
It sounds like these are important things to you, so you should be concerned about these things. You said assuming all things equal regarding fees, so I take it that the loan terms are fairly close between the two lenders. If that's the case, then the tone of your email would make it sound like the big bank is what suits you the best.
I've worked at both ends of the spectrum in my career. In general, a broker is probably going to have a little more influence on the process leading up to your closing - a more personal experience, flexibility, etc - while a large bank is probably going to provide more consistency and stability throughout the life of your loan. However there are always exceptions to that generalization. At the end of the day, I'd encourage you to work with the lender you have the most confidence in to deliver on their promises. Because if they can't close you on time and deliver then everything is a moot point.
Hope this helps
I hope you have both loans quite solid by now, especially since you said you are 'nearing' close. Have you removed your loan contingency yet? If so, you need to work with whoever can definitely provide you with the loan and finish all the process required to fund and close per contract. If not, you have the potential of losing both your deposit and the house.
As you have told yourself, I don't think a broker can ensure ongoing service for 30 years. Once you signed the loan doc, if your loan is like my, we just pay our mortgages monthly (automatic deposit is the prefer method, and then we will recieve the statements and occasionally a letter to tell us our loan has been sold. But all terms and conditions stay the same when a loan is sold.
You will need to get answers from your mortgage broker about the terms of the loan, the pre-payments, before you go foward = basically, you need somebody to tell you the terms of your mortgage, otherwise, you can't sign up with that loan.
Yes, watch closely to make sure you meet the deadline of whatever (your agent should be totally on top of that and reminding you to move along to meet your contractual obligation) to ensure a successful close of escrow.
Sylvia Barry, Marin Realtor
I'm an agent in San Diego county. However, I have a broker up in the Roseville, CA area that I refer my buyer clients to. I've been in the industry for many years and have dealt with tons of brokers and direct lenders. It has been my experience that you can typically get congruent, if not better, pricing on your loan through a broker. A broker has access to many direct lenders so they can shop for you in regards to interest rate as well as a loan that works best for your specific transaction. It's taken me a long time to find an excellent broker with business practices similar to mine... i.e. the client needs come first.
The broker I mentioned above is Kat Whitman at Whitman Metropolitan (firstname.lastname@example.org). I respect Whitman Met's business practices because they will answer any question you have.... Even in regards to what they make on the loan and how much. They have no junk fees and aim to get you the lowest rate out there by cutting their own pay on the back end. Definitely give them a chance to quote you and let Kat know that I sent you her way.
Best of luck!
Solant Real Estate Advisors, Managing Associate
Generally speaking, you are correct in assuming that your loan will get sold off. However the new owner of your loan should have to follow the terms of your loan as it was when you signed for it at closinig. So, I would recomend a good heart to heart with your lender and get it placed into the loan contract that you can do certain things such as pay every two weeks.
Best of luck to you!
It sounds like you have the right questions in mind. I will always suggest a broker over a large bank anyday of the week not just because I am a broker it is for the very simple fact of blanket training, certification both state and federal, just the knowledge of all levels of lending and law changes. Not to mention If you get turned down by a bank then you have to strike up the working relationship all over again which is such a waste of time and makes you uncompetitive. A good broker is on the ball, we have our teeth on the line..Large banks will not have to disclose back end fees where a broker by law has to. I have spent this past year closing deals for clients that have been turned down by all major institutions. Large banks are just that large and hire people that have no stake in your timeframe there knowledge only reaches as far as the front door. Good luck Mario and if any questions please feel contact anytime.
Universal Capital Mortgage Corp
(800) 736-0565 ext. 206
Funding Loans In CA for 20 years
Dre Lic # 01025802
For instance, some mortgage companies have relationships with lenders where they can get pricing from multiple banks like brokers do, but they underwrite and fund the loans themselves to fit the other lenders guidelines. This is ideal because you still get the luxury of working with someone who can competitively price your loans but can control the process.
Brokering loans leaves the quality of service regarding underwriting and funding out of the brokers hands. Coming from someone who used to broker 100% of my business, the service levels given to brokers is too poor to be consistent for a good consumer experience. It didn't used to be this way but has moved that way since the market has changed.
Banks offer one product pricing and set of guidelines. They also fund and underwrite their own loans but you don't get to competitively shop the loan unless you do it yourself.
It's sort of confusing, but in my opinion, work with a mortgage banker with multiple correspondent relationships, has the ability to broker the loan if they wish to, and underwrites/funds their correspondent loans in-house.