Home Buying in Fremont>Question Details

Newtomarket, Home Owner in Fremont, CA

Looking for suggestions on mortgage broker in fremont, ca. Advantage/ disadvantage of using mortgage broker? If rate falls in cost of refinance

Asked by Newtomarket, Fremont, CA Sat Feb 12, 2011

In contract and new to get things done soon.

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Steve Ornellas’ answer
Hi Newtomarket:

I assume you are just starting out, so I'm going to provide you a few links I would highly advise you visit to obtain a good understanding regarding your future financing:
http://www.Steven-Anthony.com/GettingStarted (speaks to getting a "True Pre-Approval")
http://docs.Steven-Anthony.com/RateShopping-DoItRight.pdf
http://docs.Steven-Anthony.com/SAR-HowMortgageRatesAreDeterm…

Regarding the subject of Banks vs. Brokers, here's a short and quick GENERAL comparison BASED ON MY INDIVIDUAL EXPERIENCE between the two:

Retail Banks (Wells, BofA, Chase, etc.):
a) W2 employee Loan Officers NOT licensed by the State/Fed.
b) No Real Estate or Financial Training Required.
c) Access to Bank’s single set of loan products.
d) When it’s time to lock a rate you get their rate.
e) Very limited day-to-day info flow to Buyer’s Agent.

Mortgage Banker/Brokers:
a) W2 employee or Independent contractors Licensed by the State/Fed.
b) State/Federal continuing education and testing required.
c) Access to various Bank/Wholesale financing products and multiple versions of multiple loan products.
d) When it’s time to lock a rate you get the day’s BEST rate between all funding sources.
e) Maximum info flow to Buyer’s Agent based on relationships.

The last point (“e”) is always a key concern. Here’s why: There are 2 types of loan conditions that we need to stay on top of to meet contingency timelines of the purchase contract: 1) Prior-to-doc (PTD) conditions are those that must be satisfied before the lender’s underwriting department will generate and send loan docs for you to sign at escrow. 2) Prior-to-fund (PTF) conditions are those items that must be satisfied before the investor will “push the button” to send your new loan funds to escrow. To be proactive regarding #1 & #2, I ask for the lender-specific list of PTD/PTFs generated by the Underwriters and go over it to get ahead of any potential issues that may affect your funding, which could place your good faith deposit at risk, and/or lead to the money spent on appraisal/credit report/property inspections to be wasted.

Retail Lenders (Wells/BofA/etc) RARELY provide a True Pre-Approval; only Mortgage Broker/Bankers typically take the extra step to obtain an automated underwriting system approval (the icing on the proverbial "True Pre-Approval cake"), which puts you at an advantage over other offers that do not have this.

If you would like my recommendation for a Mortgage Banker/Broker that will best serve you, please contact me offline so I can determine what your actual needs are.

Best, Steve
0 votes Thank Flag Link Sat Feb 12, 2011
BEST ANSWER
Honestly,

You need to make a decision asap. You can find a Mortgage Banker that has the ability to broker and lend directly as well. The big issue, is that you are in contract and this truly is not the time to shop.

I have ran into this servicing my clients I work with at Keypoint Credit Union where they get into contract before having a set lender causing un due stress in the loan process.

Not only that, closing time is paramount and a lot of the Major Commercial Lenders promise to close in 20 days and take 60 days. Promise an awesome rate, and the lock expires.

What I would recommend would probably be find a mortgage banker with descent rates and a fast in-house process but the ability to broker if your deal requires more flexibility. 2nd I would go to a mortgage broker, if I could not find a banker because they tend to be more knowledgeable then a commercial bank.


Do not do the following:


1) Use an online lender. Use somebody local you can meet with. You are in contract and most online lenders will not be able to perform at the service level you will need to close on time.

2) When you find your lender. STAY WITH THEM! Bouncing around trying to create a bidding war will put your deposit and closing time at risk.

3) Understand that loans as they are now are not the same as they ised to be. And despite a great fico score, great income and a large down payment. Your loan can still be caught up with trivial issues



Good Luck. I hope that my input helps.

-Gilbert
1 vote Thank Flag Link Sat Feb 12, 2011
Additional resources '3 reasons to use a mortgage broker"

Good Luck,

Michael Tessaro
myeastbayhouses@gmail.com
0 votes Thank Flag Link Sun Feb 13, 2011
Newtomarket,

There are numerous choices out there, most of which I have been a part of in one for or another over a longer than I would like to admit period of time. The three main choices are:

A Direct lender. This type of lender is capable of processing, underwriting and funding their own loans without the need to send them anywhere. This can be convenient as the loan officer has full access to the loan throughout the process. A loan officer for a direct lender often has a good relationship with the chain of command as well and can help move the loan along as needed.
The second is a broker. The loan officer here has access to a mulititude of lenders, programs and rates, but the negative here is that once they send the loan off to the lender (brokering it out), they have little access or control.
The last is a correspondent lender. These lenders have the authority to underwrite and process loans for major institutions and will often fund the loans as well. This is exceptional in that they have control of the process, in-house accountability and time saving funding (also in-house).
What then would be the best? All three of course and that is why I moved to the company I am with now - Summit Funding. I found this lender to have the best of all worlds for my clients. In-house speed, big banker rates and a vast array of programs -- all to the benefit of the client.

Hope that helps - feel free to call or email anytime with questions.
0 votes Thank Flag Link Sat Feb 12, 2011
Steve gave a really excellent, comprehensive answer that I cannot add much to.

Many mortgage brokers are also direct lender mortgage bankers, they do both. So they have a ton of options to get your loan funded. Mortgage bankers are different than large retail depository banks such as Wells Fargo or BofA. You would be surprised at the tremendous variance in how each lender interprets the FHA, VA and conventional guidelines. All of the lenders have different "overlays" on top of the core FHA, VA, Fannie and Freddie guidelines and many have their strengths and weaknesses. That is why it's an advantage to work with a loan officer who has access to all of the options, especially if your loan has quirks.
0 votes Thank Flag Link Sat Feb 12, 2011
It's not a matter of what type of lender or even the lowest rate. The right loan originator can save you lots of money and deliver a problem free loan. .... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Sat Feb 12, 2011
I recommend John Dutra of Summit Funding. John is Fremont based and very knowledgeable, professional and ethical. Contact him at 510-364-0764 or jdutra@summitfunding.net.
0 votes Thank Flag Link Sat Feb 12, 2011
I also have a mortgage broker for you to call she has been in this business for 30 years, and has seen a lot of ups and downs. She is very client friendly AND has never let me or any of my clients down. She is prompt to return your calls and stays on top of every transaction. Her name is Mindy Witherell her number is
925-640-2386 email is minwitherell@gmail.com .....Dawn
Web Reference: http://DawnRivera4Homes.com
0 votes Thank Flag Link Sat Feb 12, 2011
The BEST Mortgage Banker/Broker in the business is MAri Mahoney at RPM Mortgage (based out of Pleasanton) 925-200-6590 or by email mmahoney@rpm-mtg.com

She has NEVER let me or my client''s down in 25 years

Good Luck,
Michael Tessaro
0 votes Thank Flag Link Sat Feb 12, 2011
Advantage of using a mortgage broker is that you have more options/programs available since most of them work with a number of lenders. Its like approaching multiple lenders in one go. Look for one well established with a long track record.
0 votes Thank Flag Link Sat Feb 12, 2011
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