Mortgage Sources 101
One of the most common questions I get asked all the time is, Chris, why did you become a mortgage broker and what are the other options for getting a mortgage? Let me walk you through it. One option that you’re quite familiar with Banks savings and loan credit unions. Pros and cons.
One of the challenges with them, they’re one source for money. During the pandemic, when it was so busy, many banks and savings and loans couldn’t keep up with the volumes. So they raised their rates a little bit to try and slow it down. When you only have one source of the money, there can be some limitations. What’s another source?
A mortgage bank or what’s a mortgage bank? Or they don’t collect deposits and credit cards like the banks do. They just do mortgage loans. They’re a direct lender, but they can have the same challenge. They sell whatever they want. And if they need to raise their rates series rates a little bit, they have the flexibility to do that.
But there’s just one source of money. Why am I a mortgage broker? Everything in green is always good. I have up to 100 sources where I could try and place your loan. What does that mean? Well, during the pandemic, I definitely had some lenders that raised their rates a little bit because they wanted to slow things down a little bit.
But I had 90 plus that didn’t do that. Being a mortgage broker gives me the ability to shop your loan for whoever has the biggest appetite at that time. Do you have any questions? Reach out to me any time. Thanks. Have a great day.
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