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If you want your loan to close, you shouldn't use one of the large banks these days. It's been this way for at least 5 years. The big banks just don't have it going on to close on time, and you're a number being passed around, not a name.
I have been referred to a mortgage brokerage called Loan Depot to buy a condo we would like to buy.
Is it just as good to get a mortgage from a small brokerage like this, rather than a large bank (like Wells Fargo, Chase, etc.)?
Thanks for all guidance/opinions in advance!
95% off all loans get sold within 30 days to the big banks anyway.
I had a mortgage with Wells Fargo. I refinanced and went with a small loan company. The loan was sold back to Wells Fargo a week later with the new terms.
I have been referred to a mortgage brokerage called Loan Depot to buy a condo we would like to buy.
Is it just as good to get a mortgage from a small brokerage like this, rather than a large bank (like Wells Fargo, Chase, etc.)?
Thanks for all guidance/opinions in advance!
Loan Depot ain't small. They operate off the Centralized Call Center model. Although I have no personal experience with them, I'd imagine there is a funnel-type Ops Model wherein many sales agents submit files to overwhelmed/overworked Processors and Underwriters, and there is significant delay that might affect your closing timeline and comfort.
BTW, this is very similar to the model of every single "Big Bank" that ever existed. Commissioned Sales staff stuffing files onto stacks and stacks of files in Ops dept.
If you want your loan to close, you shouldn't use one of the large banks these days. It's been this way for at least 5 years. The big banks just don't have it going on to close on time, and you're a number being passed around, not a name.
Not that I'm a fan of big banks, but this is not my opinion of them based on experiences. I've closed three Chase loans in the past 4 months, every single one was ready to close at least a week prior to closing. No issues whatsoever.
The ONLY issue I have had with a "big bank" was with Wells Fargo and it had nothing to do with closing on time, Wells wanted to set up the buyer's tax escrow at a nonhomestead rate when the property had a homestead exemption. The attorney was able to resolve this with Wells Fargo fairly easily.
I closed a re-fi with Loan Depot in August, using a local broker. I have an extended family member who is a mortgage broker and they couldn't touch the rate/cost I got through Loan Depot. The process was completely smooth, no hiccups. Even the appraisal was scheduled quickly, which was a little bit of a surprise since I'm in a very hot real estate market and I've heard of some delays. They sent a traveling notary to my house to sign the paperwork, super easy.
Interestingly, Loan Depot has kept my loan, which I never expected. Limited contact with them since I haven't had to contact them for any reason, but so far, everything seems fine.
Real Estate is one of only a hand full of products that have performed well decade after decade. Because of this, lots of small finance companies pop up all the time. Some fail, but normally it is due to aggressive practices and poor management. These failures are big news and it makes it seem like every small mortgage company is somehow "shady". It's funny, because Credit Unions are small and people don't have the same opinion of them.
I went with a major financial institution because they offered the best rate.
It's funny, because Credit Unions are small and people don't have the same opinion of them.
I've used a small credit union for my last three mortgages. Easy-peasy process & the credit union was chosen specifically because they're small. No way to hide from me if they Bork my loan. When the big bank borked my mortgage, even going in person didn't help, they couldn't accept a payment, they didn't know why, "call this friendly Indian call-center, maybe they can help". Never again.
The advantage to using a mortgage broker is that they represent many lenders and can better tailor a loan to match your situation. If you have self-employment income, limited time on the job, get paid in cash, low savings, lots of credit card debt, etc some lenders will like you and some won't. A mortgage broker will place the loan with a lender who is OK with whatever your situation is.
95% off all loans get sold within 30 days to the big banks anyway.
I was just going to post the same thing, maybe not the exact numbers but the same concept. Once I discovered my lender intended to sell my first investment property mortgage to X bank, I asked that the remaining properties (I was on a buying spree) would be sold to the same bank, and even made a small concession once or twice to ensure that. Now I'm in the sweet position of having all my mortgages at the same BIG bank. Really big one. And with my perfect payment history* I'm pretty sure they like me as much as I like them.
BUT... As borrower, you have no control over your mortgage being sold at any time. That right is solely the mortgage company's right. The good news however is that nothing about your loan can be changed. Whoever buys it is stuck with the original terms. The only practical difference is that you would be sending your payments to a different address and making out the checks to a different payee.
The deal worked very nice for me because I now do my business banking with same bank, and all my mortgages are on auto-pay.
* Actually I doubt payment history makes much difference. To banks, mortgages are about the same as playing cards... or baseball cards....
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