Understanding Your Options When It Comes to Finding a Loan:
Bank Loan Officers:
The loan officers at a bank, credit union or other lending institution are employees who work to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans to draw from, but all loans originate from one lending institution. The Bank Loan Officer is not required by law to divulge their fees to you.
Brokers are professionals that are paid a fee to bring together lenders and borrowers. They usually work with dozens or even hundreds of lenders, not as employees, but as freelance agents. They find and evaluate home buyers, analyzing each person's credit situation to determine which lender is the best fit for that person's needs. A good mortgage broker can find a lender for just about any type of credit. The Mortgage Broker is self employed, and as such is motivated to achieve the best deal for his or her client. Many Mortgage Brokers are responsive to their client's calls 24/7, rather than 9-5 Mon-Fri. The Mortgage Broker is required by law to reveal his fee. Mortgage brokers can often find a lender who will make loans that a bank refuses. They can also provide credit repair services to help you to qualify for a loan at a later date. Loans for unique or commercial properties might be easier to secure through a mortgage broker.
Working with an experienced and reliable Mortgage Broker or Loan Officer you can trust to navigate you through the difficult loan process is essential to your home buying success. The Burgess Team recommends Brian Dean of FirstCal:
Senior Mortgage Consultant
FirstCal (First California Mortgage Company)
Santa Cruz: 831.338.9826
South Bay: 408.489.0952
Issues with Out-of-Town Lenders: Some out of town lenders don't understand the local building codes, regulations and real estate laws (e.g.: types of heating systems used in specific areas, private septic systems, common classifications and terms used by local appraisers).