1 Mortgage Banks - You might not recognize the names of many mortgage banks. That doesn't mean they aren't a good choice. Note the difference between 'a' and 'b' -
a) Loan officers can work for a mortgage bank that permits them to ONLY write loans for their employer - the named mortgage bank. The mortgage bank is lending you their money.
b) Loan officers can work for a mortgage bank that permits them to write loans with that mortgage bank (lending that mortgage bank's money) AND/OR also 'BROKER" loans with other lenders.
2) Consumer Banks - These would be both large and small banks that lend their money. Examples would include Bank of America, Wells Fargo and a large number of regional or local community banks that service consumers for checking, savings, money market accounts, etc. Most of the larger banks will discourage, or not permit their loan officers the option to broker a loan.
3) Credit Unions - Membership required.
4) Mortgage Brokers - If it is only a broker, they don't lend their own money. They work as a middleman and find the best bank to lend you money. This is harder today than in years past and the number of lenders who are ONLY mortgage brokers has substantially dwindled compared to years past.
All the best,
VP of Retail Sales
Toll free: 800-359-1996 x551
Alt emai: fritz@post.Harvard.edu
NMLS ID: 387922
Visit my webpage: http://www.totalmortgage.com/bankers/fritz-walter/
Company Website: http://www.totalmortgage.com
Total Mortgage Services, LLC - NMLS #2764
Licensed in: CT, FL, MD, NJ, NC, SC, TX, VA
Total Mortgage Licensed in: AR, CA, CO, CT, DE, DC, FL, GA, IL, KS, ME, MD, MA, MI, MS, NE, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VT, VA, WV, WA
Total Mortgage offers a complete selection of mortgage programs including:
Conventional, FHA, FHA 580-639 FICO, FHA 203 Renovation (Streamline & Consultant), HomePath, VA, VA IRRL, USDA, Jumbo financing , and No Income or reduced income. Portfolio, jumbo, and conventional programs offered for self-employed borrowers as well.
There is one other important difference, while those who work for depository lenders and credit unions may have to register with the NMLS, Nationwide Mortgage Licensing System, they do not have to be licensed either by the NMLS or by the states in which they do loans. They do not have to take continuing education courses, or pass the tests that are involved.
Some people also do not realize that loan officers for banks work on commission also. Someone is getting paid along the way whether you go directly to one of the banks you mentioned, or you choose to go another route. They are not getting a salary, other than possibly a small draw against commission.
A mortgage broker is very useful if you are a self-employed borrower or have an atypical loan scenario. A mortgage broker gets paid from you in terms of an upfront fee, points on your loan and/or compensation from the lender with whom the broker places the loan. The advantage of a broker is that he or she can shop various different wholesale shops and decide at the last minute, where they will place the loan. In the past, mortgage brokers would place the loan where they would make the most profit. Today, with the current mortgage banking and brokering laws in effect, all banks must adhere to certain pricing guidelines with respect to the good faith estimates that they provide.
The best advice with respect to mortgage companies is to choose a mortgage company that is reputable. Something too good to be true, tends not to be true. Ask your real estate professional, check with friends and relatives for referrals, talk with your attorney or financial adviser. Some mortgage brokers are fantastic. Some banks are the pits! If you are navigating through uncharted waters as a first time home buyer or need help, ask lots of questions. All mortgage companies and banks provide good faith estimates. Using the good faith estimate you can compare different providers.