The first thing you should always do when you start looking for a Mortgage, is to shop for it. Checkout other lenders and see what the programs are.  Don’t ever assume the first offer your getting is likely to be your best offer.  It is important to get to the bottom line.  To do that, you need to evaluate three things.

1. What’s the rate you’re getting and that they’re quoting you?
2. What are the closing costs?
3. What’s the loan amount?

Wholesale lenders have a great advantage over retail banks, because doing mortgage lending is their entire focus.  They’re not distracted by commercial lending, or by savings accounts, checking accounts, and other situations. So all of their energies are going towards doing the best mortgage Loan they can.

At United Mortgage Financial Group, we offer loans as a broker versus a bank.  We are often called a “Correspondent lender,”  which means that we are not limited to one bank’s guidelines or rates, because they really do vary.   Some have greater overlays in addition to protect against foreclosure, or people defaulting.  We’re able to take a finance situation, and match it to the lender that best fits their needs. That really gives us a nice advantage.  Get the loan that best meets your needs.  Let us help you shop for the best mortgage. Contact us today at our website site or call our office at 480‑503‑3354.

Transcript:

Matt OBrien:  Welcome back to another segment of “Arizona Mortgage News Insider Update.” We’re here with out local expert Mike Goblet of United Mortgage and Financial group. Today Mike, you’ve a pretty interesting topic on how to shop for a mortgage.
Tell us a little bit about that, and good to see you again.
Mike Goblet:  Thanks, Matt. I thought it would be a good topic because the housing market, the refinance market being hot, and unfortunately too many people go in with preconceived ideas about Mortgages. As a result don’t always end up with the best loan for them.
How should you shop for a mortgage? I’d like to actually start with…I think that there are three common assumptions, or questions that people have.
Matt:  This is going to be more fun than shopping for a car, correct?
Mike:  [laughs] Yes it certainly should be. Although both can seem very tiring at the time, because both are very important decisions that people are making. So, that actually makes it more important to shop.
The common questions or assumptions is, “Are banks better than non‑banking lenders for a mortgage?” Non‑banking members meaning they don’t have retail outlets but they’re simply wholesale lenders that only do mortgages.

Second question is, “Are credit unions better than either banks or non‑banking lenders?” The third is ‑‑ that I think it’s a very common assumption ‑‑ “If I have money in a bank even a lot of it , am I going to get a better deal or better treatment?” A lot of people make those assumptions.

Before you make any of those assumptions, the first thing you should always do when you get going for a mortgage, is to shop for it. Checkout other lenders and see what the programs are.
Don’t ever assume the first offer your getting is likely to be your best offer. That being said, second in my opinion wholesale lenders have a great advantage over retail banks, because doing mortgage lending is their entire focus.
They’re not distracted by commercial lending, or by savings accounts, checking accounts, and other situations. So all of their energies are going towards doing the best mortgage loan they can.
The third thing is having money in the bank actually gives you no advantage whatsoever, because literally the entities that do wholesale lending versus retail banking are completely different in the bank, and bottom line all the mortgages end up getting sold in the same secondary market, Fannie, or Freddie, or wholesale investors that do the buying.
All the mortgages have to meet the same guidelines. A bank can’t give you different breaks. Simply because you have money there even a lot of it.

Matt:  That would seem to make sense that banks would most likely be a higher cost, because they’re going to need to make something by being a broker in that transaction.

Mike:  It isn’t so much in being a broker, in that transaction that they’re making the money, but they usually have significantly higher overhead of managing the retail branches, or greater staffing and doing more than just mortgage loans. So, their overhead inherently becomes higher.
How do you shop for a mortgage? Unfortunately, you really can’t shop for it by line item. Saying, “I’m going to this lender and these are the charges they’re showing.”
That’s because the banking laws set up today do not require banks, or banking entities to provide full disclosure of what all the fees and costs are. Not even what all of the rebate is. So, you can’t really just say, “This lender is charging me this verses you’re charging me this,” because they won’t match up.
In almost any of the cases. Unless your doing two mortgage brokers against each other.

Matt:  They’re not going to like that.

Mike:  No. The other becomes really then…”How do you really shop?” Go to the bottom line. I mean the true bottom line. Number one, “What’s the rate you’re getting and that they’re quoting you?” Number two, “What are the closing costs?” By that I don’t mean including the escrow account, because those are not considered closing costs although it’s still money needed for closing.
The third thing is, “What’s the loan amount,?” because whether your doing a purchase, or a refinance you need to make sure particularly in a refinance that you didn’t get to zero closing cost simply, because they raised the loan amount greater than the payoff amount.
So those are the real keys. “How much money am I bringing to the table and how’s it being used?” Actually as a broker we often end up with closing costs being in a negative number, meaning that the lenders rebate not only covers all of the closing costs, but will even provide you additional money toward the escrow account. That’s something you really want to look for if you can. To at least see if it makes sense for you.

Matt:  You’ve seen a lot of rebates still being offered these days?

Mike:  There’s a rebate offer on every loan. I won’t say at every rate because sometimes it’s not a rebate, but it is a charge buying down to that rate. For example, a $200,000 loan today based upon today pricing, assuming good credit that’s there, you could probably do a no closing cost loan at 3.75 percent, or 3.875 percent. Meaning the rebate will cover all of the closing costs at that point.
Your APR’s going to be slightly higher of course. So I’m going to guess 3.75, might even be 3.81. Some thing along that line.

Matt:  Sounds like there’s still great rates and great opportunities that are …

Mike:  There are. One of them that we offer as a broker versus a bank, or even what’s called a “Correspondent lender,” is that we’re not limited to one banks guidelines or rates, because they really do vary, some have greater overlays in addition to protect against foreclosure, or people defaulting.
We’re able to take a finance situation, and match it to the lender that best fits their needs. That really gives us a nice advantage.

Matt:  As always sound advice. What’s best way to get in touch with you, Mike, for those that need to learn more about getting the best rates, and how to better shop around. Probably just call on you is the best way to shop around.

Mike:  That’s a good place to start. I’m happy to provide the information, provide a fees worksheet. Traditionally even provide all the different pricing that goes out at the different rates that you can choose, because candidly, whatever rate you choose and rebate, doesn’t impact me directly affecting the fees or rates.
It’s really up to you, but I can be reached…our office number is 480‑503‑3354, or you can call me directly on my cell at 480‑220‑2329, or email me at mike.goblet and our company initial umfginc.com. Look forward to trying and help anybody, and provide the information they’re looking for.

Matt:  Thanks again for some enlightening tips on what to look for when shopping for a mortgage. We’ll look forward to our next session, Mike.

Mike:  I look forward to it too, Matt. You have a good day.

Matt:  You too. Thanks.

Mike:  Bye now.