Mortgage Banker vs. Mortgage Broker vs. Mortgage Lender etc.

[bm051]

Good morning,

I am in the process of beginning to look for my first home and I'm confused as to where to begin with the loan process.

Some details --

We are looking at a house out of our area, though in the same state, about 1.5 hrs away.

We have a, not necessarily odd but, different financial situation as my wife has only been on the books for a few months but has been employed her whole life and my job will become a remote position (I'm sure it will be secure but I don't know how lenders feel about this).

Who (ie. broker / banker / lender) would be the best person to originate this with that can navigate my situation in an effort to get the highest loan amount possible? I'm sure I'd be approved for a loan with my credit, my concern is getting as much as possible, as I will likely be the only person on the loan. Please let's not get into a debate about extending past one's means. We know with certainty what we would be comfortable spending but worry that the banks may feel otherwise due to job history, relocating and not taking any of my wife's income into account for the loan.

Also, how would I find a broker/banker? I've asked people for referrals, but no one has suggestions. Should I look for this person in the area I'm searching for a home, or does it not matter?

Thanks so much for your help.

-B

[Anonymous]

Is your wife self-employed or a W2 employee?  If she is a W2 employee it should be pretty easy to use her income.  If she is self-employed then you would need to show that on your last 2 years tax returns to be able to use it unless she shows a loss every year then it would probably be better with just you on the loan.  

As for your situation it shouldn't be a problem at all.  As long as your verification of employment says your employment is likely to continue then you should be fine.  You might possibly need a letter from your employer that states you can work from home.  I have done loans for people in your situation and it's never been a problem.  It just might require some extra documentation.

I am a lender who can lend in all 50 states so if you are interested I would be happy to help you all out or just answer any questions you may have.  Hope this helps.

[bm051]

Thanks for your reply Marko, I really appreciate it

Her w-2s only extend through the last few months so there is very limited history in that respect. I stated that she has been employed in an effort to show that she is perfectly capable of obtaining and keeping a job to help emphasize my need to get as much as possible on a loan that is only in my name, as the lender probably wouldn't take the limited history into consideration.

Thank you for the heads up on the employer letter. That shouldn't be a problem. 

-B

[Anonymous]

If she has been on her W2 job for 30 days then you should be able to use her income.  You will just have to show a 2 year work history and even if she wasn't working the previous 2 years then usually a simple letter of explanation will work.  All the lender should want to see is the last 30 days worth of pay stubs for her and then they would get a verification of employment form filled out by her employer so you should be able to use her income.

[StartingOver10]

My opinion:

• Big box banks are the most restrictive, IMO stay away from them except in very narrow circumstances (jumbo loans for example)
• Mortgage bankers are my favorite
• Mortgage brokers are good too

I prefer mortgage bankers also known as correspondent lenders over brokers only because they originate, underwrite and fund their own loans. They also have the ability to broker out a loan if they don't have the program you need for your circumstance.  

Both mortgage bankers and mortgage brokers have fewer overlays and are less restrictive, but they do vary from one another so you have to find out the guidelines that apply to your situation.  Not every lender is the same by any means. 

[BrianB_The_Loan_Professor]

In my experience it really boils down to the loan officer you are working with

It could be a bank a banker a broker - if they know what they are doing your experience will be a positive one

Find someone that explains things and answers questions

I agree that banks are the most restrictive - you are also most likely to get a kid right out of high school that has never bought a home or had the experience needed to make your mortgage process anything except stressful - but if you walk in and get an old pro it could be the opposite 

The differenc between banker and broker is how the underwriting is handled - it is an advantage to be able to have some control over that process

Good Luck

Hope this helps

BrianBTheLoanProfessor

[DallasLoanGuy]

brian and startingover have pretty much nailed it.

the realtor you pick will know some good ones

[bm051]

Hi Dallas,

Yes. I agree. Thank you very much Brian and StartingOver, these are great responses.

As for the realtor, Dallas, we don't know where to begin with that or how to choose. Referrals aren't possible since we are looking far from our area. I'm guessing google is my friend in this case, even though the best are probably all word of mouth.

Thanks,

-B

[StartingOver10]

Do you have a Realtor in your area that you know and trust?  If so, that Realtor can find one for you in the area in which you plan to move.

Or as an alternate, you can go to the CRS website (CRS.com) to get a Certified Residential Specialist. Make sure you speak to several Realtors. Interview them over the phone to see who is a good fit for you. 

[bm051]

 Hi StartingOver,

No, I don't know any personally. We have friends that have dealt with realtors, but I'd feel a little bit awkward asking for a realtor's time just to have them refer me to someone else and get nothing out of it.

I will check that site you mentioned. I've never seen it before and it may prove helpful.

Thanks for your response, I appreciate it.