Mortgage Lending Roles
Mortgage lending has its own vocabulary that can be confusing for buyers, especially first time home buyers researching how to get a good mortgage loan. People often ask how to compare mortgage brokers vs. mortgage consultants — what’s the difference? And how should I start my loan search?
Choosing the right person with the right role to guide you through the loan process gets you on the right path for the result you want.
A mortgage broker is a loan officer whose job is to guide you to a specific, loan product offered by the bank or financial institution with which they are associated. They are an employee of the bank or are contracted with a specific, limited suite of lenders.
Independent Mortgage Consultant
By contrast, an independent mortgage consultant is not beholden to any lending institution. There are a number of benefits in working with an independent mortgage specialist like myself.
- I have access to 100s of loan products from scores of lending institutions.
- I can help you find the most financially advantageous financing instrument that meets your needs.
- I am invested in helping you create the most appealing financial picture in order for you to qualify to for the loan amount you wish to obtain.
- I can work with you on improving your credit, or otherwise shifting loan products and/or capitalizing on current assets, in order to meet your goals.
Independent does not mean unregulated.
I am a licensed real estate professional and am governed by the California Department of Real Estate (DRE) as well as the Consumer Finance Protection Bureau via my National Mortgage License.
As a licensed mortgage specialist in California, I have a fiduciary obligation to help you to the best of my abilities to get a great rate.
A bank does not have this responsibility and can choose to lend or not lend for any reason at any time. Thus, a mortgage broker working for a bank is far more limited in what they can do for you.
Not Limited to Certain Banks or Lenders
As an independent mortgage consultant, I am not representing a single bank and am not a banker. Rather, I have relationships with all mortgage banks and lenders that are lending in California.
My obligation is to you and not to any particular bank or lender.
C2 Financial — The Largest Mortgage Broker in California
I am an independent agent, and I have a network.
I am associated with the largest mortgage lending consortium in California and in the country, C2 Financial Corporation. My relationship with C2 gives me access to every wholesale lender nationwide, as well as preferred rates and pricing, because of the volume of business that C2 Financial’s over 500 loan agents produce. Among that group, I consistently place in the top 10 – 20 of 500 companywide. I am currently the number one agent in Northern California with C2 Financial.
Access to All Available Mortgage Products
A bank’s mortgage broker or loan agent only has access to that bank’s products.
In contrast, as a mortgage consultant working with the power of a large broker behind me, I have access to all available mortgage products.
Personal Attention to Each Home Buyer
As a commissioned loan agent, I am very deeply vested in seeing that your deal happens.
I work on fewer transactions per month than a retail bank loan agent who has a much larger pipeline of loans to close. They are paid by salary and only need to see that a percentage of loans close in order to receive their small percentage bonus.
For that reason, a bank’s agent isn’t highly vested in your deal closing to your exact satisfaction, because, to be frank, your transaction doesn’t likely affect their income significantly. Additionally, they aren’t necessarily penalized if a deal takes longer to happen or doesn’t happen at all.
Work Hours Well Beyond 9 to 5
As an independent mortgage consultant, I work whenever the deal needs work, not just 9 am to 5 pm, Monday through Friday.
Institutional vs. Niche Lending Products
A mortgage broker employed by a lender has a limited range of loan products available.
An independent mortgage consultant may have an area of expertise (for example, I specialize in residential home purchase lending), however independent consultants like myself will also offer a range of options. For example, I have a large refinance practice and am well versed in commercial property lending, stated income/self-employed, hard money lending, and other niche lending products.
Banks and lending institutions may charge fees, and these fees can vary from one institution to another. As an independent consultant, there is no application fee with me. I offer free consultation. Plus, the entire process of collecting documentation and developing your application is free. In fact, I only receive money if I close your loan. During our work together, I show you exactly how and when I will get paid for my time.
Home of REAL Mortgage Advice℠
While a loan broker may give you an overview of the options their financial institution has available, I sit down in person or on the phone with every home buyer for 1-to-2 hours to give you a private Mortgage 101 session, to get you up to speed on the process, mortgage options, current rates, as well as giving you a set of expectations, strategies, and timelines that we can rely on to make sure your loan process is as easy, low-stress, and predictable, as possible, while ensuring that we are working towards the most optimal result for you.
Start Your Mortgage Loan Search Here!
If you have questions about where to start your home finance process, please give me a call.
And if you would like to learn more about why an independent consultant is preferable to other in-the-box options, please read my article About Mortgage Loans to learn why you should not start this process with an online rate quote! I look forward to speaking with you. —Vic
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