Why use a Mortgage Banker to get your loan?

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Why Use a Mortgage Banker

Posted by Ian Klein on Tue, Mar 12, 2013 @ 11:38 AM

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Any institution, company, or individual that initiates mortgages is known as a mortgage banker.
Mortgage bankers make use of funds they borrow from a lender or their own funds for mortgage lending. Once a mortgage has originated, a mortgage banker may possibly retain it in portfolio or can even sell the mortgage to investors.
When a mortgage has been initiated, the banker can service it, or the servicing right may be sold to some other financial institution. The main business of a mortgage banker is to earn to amount linked with loan origination. A large percentage of mortgage bankers do not hold back the mortgage in portfolio.

• Qualification of a mortgage banker

The most basic qualification that a mortgage banker should have is a graduation from a school that is accredited and an associate’s degree. A proven track record of closing sales is also usually a must and so is one year of experience in the financial industry.
Mortgage bankers should be able to present and speak confidently in front of groups of people and must also have good verbal and written skills. It is important for a mortgage banker to possess good negotiation skills and should also be able to perform analytical tasks and some that are mathematical too.

• Qualities

A mortgage broker who is successful will usually be a people’s person and feel comfortable with a wide range of people. Good mortgage bankers are generally very competitive and committed to success. A team-playing attitude and the fiscal rewards of their job is a great motivator.

• Compensation

A mortgage banker will usually be given paid training along with a salary. A commission is usually paid on sales. Depending on the bank or institution, mortgage bankers even get compensated for vacations, health insurance, and other holidays.

Advantages of hiring a Mortgage Banker

• Better pricing

Mortgage bankers sell loans as funded loans, which entitles them to rates that are generally lower. With overheads that are lower, mortgage bakers are usually more competitive when it comes to costs and rates as compared to traditional banks.
The long term relationships that mortgage bankers have help to improve not only the structure of the loan but also the pricing. If you have a good relationship with you mortgage banker, you will probably have access to better rates and also more flexibility when it comes to documents.

• Fast processing and loan closing

Mortgage bankers will usually be equipped with in-house underwriters who work with the mortgage consultants like a team. Because of this team work, great and accurate advice can be given to you right from the beginning until the end. The time taken for underwriting is also reduced considerably.
Aside from performing tasks like funding and drawing documents in house, speedy closing of documenting is a major benefit of mortgage bankers. The accuracy is much higher because of the systems in place. In case any revisions need to be made, they can be done in just a few minutes.
The capacity to lend mortgages virtually guarantees closing deals on schedule. Clients, realtors, title companies, and other sources all reap the benefits of being quick in their services. The diversified market portfolio that mortgage bankers have enables them to tell in advance where to shop in order to save money and time. The underwriting criteria of a lender are best understood by a banker and your mortgage banker will be able to structure your package in the best possible fashion.

• Wide market access

The market access for mortgage bankers is much larger than others. This access is in terms of approval options, mortgage products and loan structures that are available in a market. The advantage of having access to great resources automatically gets passed on to the applicant.

• Higher success rate

Using a professional mortgage banker is ideal for finding a loan that is best suited to your needs. A mortgage banker will make sure your loan closes on time and will also help weed out lenders that will either re-trade a rate shortly before closing or not even close. Mortgage bankers are known to be experts in this art. They have the capability to structure the terms of a deal and they usually have relationships with several lenders.

• Expert assistance

Acquiring a property or refinancing it takes a lot of time, energy, and money. A mortgage banker only gets paid once the loan is funded and arranged. They can make use of relationship to establish an auction between lenders that are interested in financing to make sure the best loan terms and rates are given to the client. This in turn creates very flexible terms for the borrower.
Lenders are aware of the fact that mortgage bankers use relationships to their benefit and also know they need to quote the best terms they can upfront. It has been proven that borrowers who speak directly to lenders don’t get market quotes or anything better than the market quotes.

Tags: refinance, refinancing, buying a home, mortgage, investment property, home loan, reverse mortgage, renovation loan, rehabilitation loan, VA Loan, VA Mortgage, Mortgage, Loan, Reverse Mortgage

Comments

In the "Refi" game there are small advantages to being a Mortgage Banker.
The real might of a Mortgage Banker is in the "Purchase" game.
If your Banker is on the ball he will call the listing agent and solidify the offer presented by the buyers agent.
In the current market, listing agents have multiple offers and need a reason to consider one offer better than the others(save pocket listings where it does not matter how good the Banker is).
Great banks guarantee a closing date backed by cash!!!
With a cash guarantee, financed offers can actually compete with cash offers.

Posted @ Wednesday, March 13, 2013 12:14 PM by Lee Duran