What’s up, Gumbonation? As we move into a new month and onward from our February credit tips, we’ll begin discussing our Home Buying Process Series. The application process can be extremely intimidating and confusing. Mortgage Gumbo is here to help alleviate some of that confusion with some simple tips, over the course of the next eight or so weeks. For this first week, we will begin discussing banks vs. correspondent lenders.
Banks:
Banks are limited in their programs. When you work with banks, you’re only getting the programs that they benefit from. Also, oftentimes the bank employee is not a licensed loan officer. His or her area of expertise may lie elsewhere.
Correspondent Lenders:
Correspondent lenders have multiple outlets at their disposal, so they can find the program that best fits your needs. They do not get paid unless you close the loan. This means that they are motivated to do the right thing. To add to this point, there are many correspondent lenders to choose from, so correspondent lenders must do the right thing to encourage people to choose them.
When choosing who to work with to find a loan program that best suits you, a correspondent lender is the way to go. But… more importantly, work with someone who knows the local guidelines such as taxes, types of insurances, etc. If you want to find qualified lenders head to https://www.