Banker is the Way To Go!

When working with Frisco Mortgage clients I’m often ask what the difference between a banker and broker is, and what would be the advantage of being a banker…I’m asked that because I’m a “banker”. Many think that bankers are limited because they only offer their banks loan programs, but that is a very big misleading statement. Yes, if you are sitting in a large local bank that would be the case. On the other hand, today’s “banker” is more of a hybrid. As a banker with Service First Mortgage (find me in the link by loan officer), we have our own underwriting staff, our own funding and closing staff, and of course we process the loan in house. Lastly and also most importantly, we close and fund our loans with our own money…just like a large bank. Now similarly to a broker, we have the programs of all the major banks and investors so that we can use all the different loan programs offered in the mortgage world…like a broker, but we are contracted or have agreements to underwriter, close, and sell our loans to them directly. In regard to fees, brokers are forced to pay an up front fee to the lender they are brokering the loan to and therefore have to pass that on to the client or absorb the cost themselves. If the broker is successful, he won’t have time to process his loans himself and will have to hire a processor that many times will require him to add an additional lender fee to compensate for the extra overhead of the processor. Lastly and most importantly, a banker can talk directly with his underwriter, or loan funding department when time lines become crucial because they work for the same company and probably have a personal relationship with one another. A broker is an outside entity of the lender that he is using to complete a loan transaction with and many times because the brokers are not part of the lenders team, they can’t be held accountable to a step by step transaction plan for everyone to be on for an efficient well orchestrate system and therefore they are held to more restrictive guidelines that they are forced to follow…many times ending in loans not closing on time. I spent the first 4-5 years of my career as a true broker and as times in the market became tough and it grew harder and harder with each transaction for me to have the wholesale lender get my loans closed on time, I research my competition so that I would be 100% sure that I had the best tools and systems to offer my clients. It was the best thing I could have done. I would have never known that not only is the platform of a banker better suited to service for the client, but it’s easier and more enjoyable to me as a loan officer too.
If you want to judge for yourself, be sure to call a banker and broker separately and ask them what the advantage of working with them is and hear both sides. You’ll be able to make an easy judgement from there. If you have a relationship with a broker and care about that person, it may be well worth letting him handle your business for the sake of loyalty over cost and service. Best of luck in your home buying and refinancing goals. Remember my line, if your friend, coworker, or family member is buying a home, or has a current home loan gone bad, CALL 469-450-BRAD.
Don’t Keep Me A Secret!!!
Brad Lynch