Financing Your Home Purchase
In
recent years more and more consumers have complained on how hard their
mortgage experience has been. With tighter lending guidelines is no
wonder that closings are not only taking longer many windup not closing
after months of hard work. Well my initial disclosure “this channel
don’t share the same views of this post” isn’t that what they say on TV?
The following are some of my personal views and experience and not a
personal endorsement for any particular banking institutions, lenders,
brokers and/or mortgage bankers. The Trends
In
recent months I’ve managed purchased transactions on both sides of the
fence, either representing sellers or representing buyers. One thing
from these transaction has lead me to write this blog post. The time
that it has taken from contract acceptance to sitting at the closing
table. Some transaction handled by mortgage brokers “Brokers” and
others by your everyday traditional lending institutions like the TD
Bank, BOA, Valley etc “Banks”. Both forms of seeking financing for your
home are good I am not saying that one is better than the other but I
notice over over a few transactions the time, process and readiness to
deliver a clear to close seem to be in favor of the traditional lending
institutions.
The Buzz
I’ve
heard from a few “street corner experts” BANKS ARE NOT LENDING! it’s
hard to get financing etc. Well I have to disagree at this point, I
think Banks are eager to lend to consumer, if banks don’t lend they
don’t make money. But I have compare notes at the closing table in a
two different categories. 1. Interest rates Broker vs Bank 2. Closing
Cost Broker vs Bank. My conclusion has been that Banks are offering far
lower interest rates and lower closing costs that can translate in
thousands of dollars savings for a home buyer.The Programs
Lending
programs between Banks and Brokers can be really complex and far apart
one from the other. Banks can offer portfolio products that they
service themselves and not have to sale the paper on the wholesale
market like Brokers. What does that mean in layman's terms well I’m
trying to wrap my head around it my self. A simple explanation is Banks
lend their own money they craft their own mortgage programs. Most
Brokers offer an array of programs that are available to them at
wholesale pricing of course there has to be a markup on the product.
Bottom line Banks can offer you more cost effective products at lower
costs, where Brokers can offer you a wide array of different products at
a premium.
When to Use a Bank or a Broker
It’s
not as simple as you may think, the final decision belongs to the
individual consumer based on his/her need. Brokers can service the
vanila file and the not so vanila files where most Banks are limited to
work with borrowers that enjoy above average credit. When in doubt try
your local Bank first, shop for your mortgage loan if they are unable to
accommodate you in one of their mortgage programs don’t give up try a
Mortgage Broker.
Pablo Lopez, ABR®, SRES®, ePro®, SFR®, REALOTR-Associate®
Century 21 Elite Realty
337 Changebridge Rd
Pine Brook, NJ 07058
Office: 973-244-7980 Xt 215
Direct: 862-210-9299
Web: http://www.pablolopez.us
Clifton Local Pro: http://propertylistingscliftonnj.com
http://cliftonnjrealestatesales.com
Clifton NJ Homes for SaleForeclosure Info: http://www.buyforeclosednj.com
