Are All Mortgage Companies the Same?

November 12, 2019


Partnering with the right mortgage company is key. After all, if financing happens to fall through during the purchase process, you may have unhappy clients and no paycheck. When you are bombarded with mortgage advertisements online, in your email inbox, and in your office from overbearing loan officers, how do you help your clients find the right mortgage company to fit their needs? Mortgage products and programs can be similar in many ways but the mortgage companies that offer them are not. Read below to learn how mortgage banks, lenders, and brokers differ and how they may benefit your client.

 

Mortgage banks and direct lenders originate and fund loans with their own money. They often provide all loan processing, underwriting, and closing in-house which means a more efficient and quicker loan process for your buyer. It also allows for more communication and control during the loan process. 

Mortgage banks and direct lenders can vary based on the loan programs they offer. For example, think of banks and lenders like a department store. While all department stores sell clothing, the brands offered will vary. The store may also offer its own exclusive brand as well. The same holds true for banks and lenders. Not all will or are approved to offer specialty products like state housing loans, USDA loans, Federal Home Loan Bank of Atlanta loans, and more. Many banks and lenders also carry their own brand of loans called portfolio loans which are unique to that bank or lender. Portfolio loans are often held by the company and not sold on the secondary market. This means the loans tend to have more flexible qualifying standards. These are great options for clients or properties that may not fit within FHA, VA, or conventional guidelines. 

Mortgage brokers do not lend money directly but rather function like a middleman who can shop loan programs offered by different banks and lenders. This is helpful for borrowers with lower credit scores or those purchasing unique properties. Mortgage brokers have less control over the loan process since the broker must package the loan to be underwritten by the bank or lender from whom the loan product originates. Ultimately, this can cause a slowdown in the time it takes to process the loan. Clients may also be able to save money by obtaining a portfolio loan directly through the originating bank versus using a broker. 

Ameris Bank Mortgage Services combines the best aspects of a bank and a broker. We offer a wide variety of specialty and portfolio products to meet the needs of your clients or listings, combined with a convenient in-house operations team and speedy 15 business-day* closing plan. For more information on how Ameris Bank can help you meet the growing needs of your customers, click here.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank’s 15 business-day closing plan is dependent on each loan and cannot be guaranteed. All loans are subject to credit approval.