K&A Luxury Estates can provide access to several Affiliate Mortgage Financing Professionals that want you to have the best home loan experience possible.
They have helped many homebuyers find the loan that fits their unique needs. With over a decade of experience in the mortgage industry, they have assisted first time homebuyers, high-net-worth borrowers, low-to-moderate income borrowers, self-employed borrowers, investment borrowers, and many others from loan application to closing. Professionals who have a deep understanding of their industry and work with their clients every step of the way to ensure funding and a smooth close of escrow.
Affiliates range from in-house Lending Officers at major BANKS or DIRECT LENDERS, to MORTGAGE BROKERS who work as middlemen between banks/direct lenders and borrowers on the wholesale end to secure financing for homeowners.
K&A Luxury Estates’ Clients/Homebuyers ALWAYS make their own decision as to which Mortgage Professional best suits their needs.
Below is a basic list of some PROS and CONS of each:
Pros of working with a Bank or Direct Lender:
- Build off existing relationship (discounts if you have a checking/saving account)
- You already know the banker who will handle your mortgage
- Lower interest rates in some cases
- Ability to add mortgage to existing banking profile and make automatic payments from linked accounts
Cons of working with a Bank or Direct Lender:
- Conservative loan programs
- Do not disclose the yield-spread premium
- Lengthy process, very bureaucratic
Pros of working with a Mortgage Broker:
- They do all the legwork for you, working on your behalf with the lender
- They compare wholesale mortgage rates from a large number of banks and lenders all at once
- Wholesale interest rates can be lower than retail (bank branch) interest rates
- You get more loan options because they work with numerous banks and lenders
- Brokers can finance tricky deals because of their knowledge and various lending partners
- Are typically easier to get in contact with, less bureaucratic
Cons of working with a Mortgage Broker:
- May overcharge you (how mortgage brokers make money)
- False promises to get your business
- May not have access to programs with select banks (approval varies considerably)
5 Tips On Finding The Best Financing Professional:
- Ask Your Realtor
- Check With The NMLS
- Rate. Rate. Rate.
- Ease Of Execution
- Experience Counts
Realtors have the inside track on which lender can perform in the time frame necessary to get your offer accepted. Your real estate agent knows who is hot and who is not. They have keen awareness of many factors that you may be unaware of. When loan contingencies are coming up, you will be glad that you went with their lender recommendation. Always trust their advice!
The NMLS has a wealth of information. Make sure your lender is licensed and that there are no disciplinary actions against them. Check with online reviews as well as the BBB. Another great source is a referral from a friend who just went through the process.
Getting the best lender is not always just about getting quoted the lowest rate. Many times lenders will solicit your application with a low rate and then switch you to a higher rate or change programs on you; claiming something in your file or financial history is the root cause. Identify a lender who will deliver what they quote!
Todays financing is difficult and sometimes down right silly. Make sure you have a lender who understands the current regulatory environment and can help guide you through the process in a streamlined fashion. Ask questions about the process.
Make sure your lender has a minimum of 5 years of experience. Anything less opens you up to paying a lender to learn “how to”. New federal lending guidelines have made this process very specialized. Always use a local in state lender!
