Mortgage Broker vs. Mortgage Company with Underwriter in house

[Vegas247]

I want a Coventional Loan 30 yr fixed....with 1 year on the job.....job gap 2 years (this info might not mean anything.)  Which is better? A broker or Mortgage company with in house underwriters.

[CH-7-Mission-Accomplished]

Either one can work okay.  An independent type of mortgage broker has many places he/she can shop the loan, so if one place won't take you they can shop you around.  The larger mortgage companies actually fund the loan with a line of credit (sometimes 100s of millions of dollars) and then pool the loans, sell them into the secondary market (FNMA/FHLMC/GNMA) and keep the loan servicing.  They pass through the note amount less 3/8 to 1/2 percent which they keep for the life of the loan collecting each year as a servicing fee.

Mortgage brokers and mortgage bankers only make money if they fund the loans.  Period.  Big banks like Wells Fargo, Chase, etc., have highly paid underwriters and loan staff who don't have the same incentive to get the deal done.  A mortgage broker can make several thousand dollars on one loan so they will do everything possible to get you funded.  And getting it done fast is in their best interests too.

The only time I would go direct to a lender who is going to keep the loans, like Navy FCU who does 100% financing, or others with special programs not standard to the marketplace.

[DallasLoanGuy]

start with banker with in-house lending. the loan officer can run the scenario by the uw before preapproval.

2nd - broker.... can send file to multiple lenders if banker balks.

best scenario?  banker who can brojker out weird files

[Vegas247]

DallasLoanGuy....So you are saying go to a banker that has underwriters in house that can also shop or use other underwriters from othe companies....? 

[DallasLoanGuy]

well. a banker with inhouse uw is all you need.  if they have the ability to send out files(broker) i guess i guess that is a bonus.

[StartingOver10]

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@DallasLoanGuy wrote:

start with banker with in-house lending. the loan officer can run the scenario by the uw before preapproval.

2nd - broker.... can send file to multiple lenders if banker balks.

best scenario?  banker who can brojker out weird files

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^^^totally agree. That is who I use for my clients because every once in a while a file does need a loan that falls outside the normal parameters....