If the loan is an "agency" loan then basically they are held to the same rules or underwriting guidelines. Jumbo loans are technically non-conforming and therefore each investor can write their own rules and set their own pricing. To drum up business and investor will lower rates on select products offering very competitive pricing.
There is one big difference between brokers and lenders:
* Lenders often have underwriting and closing departments all in-house. This gives lenders a little more control and flexibility over these two processes. They also have a warehouse lines that they use to close the loan's in their own name.
* Brokers send files to investors to be underwritten and closed. There less control and it takes a little bit more time using brokers. However, brokers often have extremely competitive rates because they have very little overhead.
There is no regulation saying that we have to be the same..... But there are some things going on.
Loan officer pay has been restricted.... We no longer have a way to earn more on hard deals by influencing the rate. Many of us make a flat fee based on loan amount and that is all.
With this, the govt has made it harder for people with 'hard deals' or low loan amounts to get a mortgage because loan officers will pick the more profitable deals unless they aren't busy that month.... This is hurting the very people the govt 'said' they wanted to protect by jacking with our pay.
Now, we all pretty much sell to the same servicing lenders out there.... So we all pretty much have access to the same rates. How much profit is built in depends on how much the loan officer's company needs to make per deal to make a profit. So the rates are marked up accordingly.
So while we don't all have the SAME rates/fees.... we are getting closer to that than we ever have been.
You still need to shop around.
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If you would like to talk to me further or speak to one of my lenders directly, they may be able to better answer your questions and help you obtain a loan at a fair rate with reasonable fees. I happen to be one of the top agents in the greater Austin area, and most of my clients who I've referred to my preferred lenders typically shop other lenders as well and up using my lenders ~95% of the time. I do not take any kickbacks or bonuses from the lenders, but simply asked them to give my clients the best rates, fees, terms possible, and also to give them the best service possible so they remain my preferred lender. If for example they do not uphold to my high standards, I do not use them anymore and they have a lot at stake as I do quite a bit of business annually.
If you would like, feel free to give me a call and I will be happy to steer you in the right direction and get your questions answered definitively and also assist you with your purchase if you do not yet have a Realtor working for you. I am with the #1 Real Estate company in the greater Austin area, Keller Williams, and happen to be one of their top agents, consistently in the top 20(Currently ranked #8 in my office of 325 top agents).
Feel free to call me now or tomorrow, Sunday, as I work from 10 AM to 7 PM seven days a week for my clients. I believe you will be very happy with my lenders and my services! Joe
Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Call 512-261-4415
Here is an example on a client I refinanced that was going to go Wells Fargo. this was a $280,000 streamline FHA refinance and the client was with Wells Fargo. Basically on this type of refinance the borrower was going to have to bring about $6,000 to closing because with a streamline you cannot roll in certain fees like on a typical conventional refinance. My friend who works at Wells Fargo referred them to me because they could not afford to bring $6,000 to closing. I was able to offer them the same exact interest rate but here is the huge difference between working with a bank or a broker like myself... With the same rate offering I was able to give them roughly a $6,000 credit so they came to the closing table with zero out of pocket.
This is why a broker can always get you the best deal Wells Fargo was going to keep that extra $6,000 as profit and I am able to give it to the client to offer them essentially a no-cost refinance.
That is how I help my clients achieve the best loan options and keep as much money as possible in their pockets. It also helps me stay in this business because I am 100% referral driven. Once I work with a client they usually tell others and from there I get more business. I would rather offer a client a great deal and have them brag about it because that in the end keeps business coming my way. Also, I work with all of the major lenders in the country... just at the wholesale level. That is why I can always get you the very best deal. I can shop from over 15 different lenders and get you the best wholesale deal out there.
Hope this helps.
Don Groff | REALTORÂ® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | email@example.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
1. which banks the broker and banker are set up with. Different banks are signed up with different banks to sell mortgages to. Brokers are signed up with different banks to broker to. Some banks have better jumbo programs than others
2. The loan officers comp plan matters as well. The higher the comp plan the higher the rate, the lower the comp plan the lower the rate. These two go in combination as well.
Why don't you email me your specifics below and I will get you a quote to compare. You should get at least 3 quotes and compare fee sheets
Loan Type wanted I.E. 15, 30 year fixed or 3,5,7 or 10 year ARM
Waive Escrows or set up Escrows.
If you are talking about jumbo loans, no one below has given you a correct answer. Since jumbo loans by definition are non-conforming, there is no guideline on rates, pricing adjustments, etc. There is no Fannie Mae or Freddie Mac or MBS or any tangible force that drives the movement of rates. Jumbo loans are portfolio meaning each lender will keep them on their books. Therefore, they can loan what they want, to whomever they want, at whatever terms they want. I have jumbo lenders with rates that span from "laugh out loud terrible" to "I cant believe they are seriously offering that" low. It all depends on the lender, the scenario and the borrower's credentials. Jumbo lenders will do things for their borrowers with deposited assets that they would not do for others.
Bottom line; there are no rules for jumbo loans.
Let me know if I can help in any way.
I am a Realtor--not a Mortgage Banker, but I point my clients toward great MB's every day.
Austin Real Estate Secrets .com
Tim Thornton, Realtor
Some brokers and bankers offer products from only one investor, while others have several banks and loan investors to choose from. That is why different programs and different rates are offered at each lending institution.
I agree with others who say service matters. It certainly isn't the same everywhere. Can the lender you choose process the loan in a timely manner? Do they meet the deadlines and closing dates imposed by your purchase contract? Do they accurately anticipate what is needed to get a speedy approval? Who makes the loan decision?
I wear two hats as both Realtor and mortgage banker. Through my company, we offer local in- house processing, loan decisions and funding. We have many different lender/investors too choose from. Contact me for a rate quote or more info.
I would be happy to refer you to some local lenders. Please feel free to contact me anytime without obligation.