Selecting a mortgage loan lender in itself can be a difficult endeavor. Calling around to each mortgage company, obtaining quotes on rates, fees, service, turn times, it can be overwhelming to say the least.
We have identified for you the three entities you can use to procure a Santa Rosa Mortgage.
You can secure a Santa Rosa Mortgage for your primary residence, second home or investment property with any of the following sources. Each provider offers a different business model, so its important as you are searching mortgage loan lenders, that you decide which business model will align best with your financing expectations.
Direct Lender– This mortgage company funds your Santa Rosa Mortgage in their own name. As a direct mortgage funding source, they draw on their warehouse lines with their investors to fund your home loan. After your loan closes, they sell your loan to Fannie Fae or Freddie Mac. Most direct lenders’ have full a delegated endorsement with Fannie Mae, Freddie Mac, USDA, FHA & VA, meaning total funding commitment from the actual federal regulators.
Pro’s
- The Direct Lender funds your Santa Rosa Mortgage in-house.
- Your loan officer has more control over the file, usually in direct communication with the underwriter (decision-maker on the loan).
- Can adjust rates and they set their own rates as a company as offered by Fannie & Freddie Mac.
- Strong retail loan product offering.
- Fast turn times on escrows 17 days -25 day closes are not uncommon with a direct mortgage loan lender.
- Ability to broker the loan, ie shop the loan for the consumer.
- Mortgage Specialist- meaning mortgage loan specific with special licensing required by NMLS National Mortgage Licensing System
Con’s
- Direct Lenders are independent, so you won’t be working with a big name like Wells or B of A.
- It is not a one stop shop, meaning direct lenders don’t deal with other banking products.
- Business model is based on ware house line capacity with big banks, so the big banks control the direct lender’s origination ability.
- Most direct loan lenders’ jumbo products are limited.
Portfolio Bank– This includes big banks, local banks, and credit unions. You can get a Santa Rosa Mortgage from a portfolio lender. Portfolio’s lender hold their loans on their books, meaning they originate loan and retain the loan in their loan servicing channel. Because they take all the risk, mortgage loan lenders’ in this bucket, are niche lenders, they want specific loans and typically higher net worth clients. They originate standard home loans, but cater more specifically to a niche product like super high balance Jumbo Loans. Traditional portfolio lenders are also full service banks.
Pro’s
- Deal directly with the loan source, similiar to a direct lender in most cases
- If your loan is a niche product like high balance jumbo’s, a portfolio lender can help.
- Ease of doing business with an in-person relationship with that mortgage company.
Con’s
- Limited product offering and choices
- Slower turn times, due to the fact portfolio lenders are full service banks
- Usually solicited to move assets into that bank or credit union, also solicited for that lender’s flagship banking products.
Mortgage Broker-The mortgage broker is available another source to consider for procuring a Santa Rosa Mortgage. A true mortgage broker is a middle man. The mortgage broker model works as the broker acting as an intermediary between the consumer and the lender. Mortgage Brokers operate on wholesale level and offer rates and programs to consumers. The mortgage broker does not have warehouse lines and your loan will fund in the name of the direct lender your broker places your loan with. Mortgage Brokers rely on direct lenders to fund their loans.
Pro’s
- Strong product offering.
- Ability to pull a loan from one direct lender and place with another.
- Rates from a variety of direct lenders.
Con’s
- Most do not have HUD endorsement limiting their ability to offer FHA, VA & USDA Financing.
- Because the loan is physically funded with another entity, the mortgage loan becomes layered, prolonging turn times.
- Lack of total control of the loan.
- Multiple credit checks, each time the loan is brokered and sent to a direct lender, another credit check is required.
Each of these business models can be used to originate and fund a competitively priced Santa Rosa Mortgage. Some things to consider; banks can broker loans, and direct lenders can broker loans and its rare, but some brokers can have warehouse lines. The wholesale model, that being mortgage broker aggregated origination is quite small relative to the total market share of home loans being originated today. Many mortgage broker companies are switching to retail direct lenders, due to warehouse lines’ flexibility.
Locate a competitively priced Santa Rosa Mortgage today!
No matter which mortgage loan lender you use, mortgage rates remain quite low. It’s fact home prices have never been more affordable, creating economical feasibility to obtaining mortgage loan financing.
Consider all your mortgage choices, get a rate quote. Let us deliver a free rate no obligation rate quote so you can decide on your Santa Rosa Mortgage.
