Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant

In House Lenders Pros & Cons

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Often times a Realtor will suggest to a homebuyer that they use the real estate company’s “in-house” lender. Realtors don’t usually push these lenders on their buyers, but they are definitely suggested and buyers will sign a disclosure that the real estate company does have affiliations and receives some compensation for that referral. Every wonder why? It is important to know how these lenders are structured, and how they operate. I have been on both sides of the table with this. I was an in-house loan officer for a couple of years about 7 years ago. That was before licensing became mandatory and the mortgage meltdown.
These in-house lenders are a joint venture between the Real Estate firm and an outside lender. The Real Estate firm takes a piece of the profits (most for the firm, a small amount for the Realtor) in trade for allowing the lender to be an “in-house” lender.
An in-house lender has trouble retaining quality loan officers because they offer low pay. Because there is a captured audience the loan officer does not have to pound the pavement for business but it is important that they establish a quality relationship with the Realtors in their office and are accessible to them.
An in house loan officer is only as good as their supporting backroom. If processing is out of state, the loan officer has limited control over the process and relies on a strong team to take care of his/her deal. I had that benefit when I was working for a Realty office, thank goodness, but most in house lenders have the kind of a system that follows the retail bank model, and the service can be less than par. In today’s hyper complicated mortgage environment, everyone needs a top notch mortgage representative, who is full time, who will make things as smooth as possible, and who will fight for their loan; all while providing competitive market terms.
It’s an understatement to say the financial world is getting complicated. You can still hire the best mortgage loan officer, and also get the best terms. Simply stay away from online lenders, and lead aggregation websites. Use local referrals, which are accountable, experienced, systemized, and have a vested interest in maintaining their reputation.
Have you had experience with an in house lender? I would love to hear about it. Contact me at Ingrid.Quinn@cobaltmortgage.com or visit my website at http://www.scottsdalemortgageexpert.com or http://www.cobaltmortgage.com/ingridquinn.

Author: ibquinn

I am a Senior Loan Officer at Caliber Home Loans, with over 32 years of Mortgage Banking experience. I have the expertise and knowledge to help focus in on your homeownership goals and make them into reality. My team of experienced mortgage professionals and I can assist you in all steps of the home buying process and ensure that you have a smooth and hassle-free transaction. Caliber cannot accept mortgage loan applications or inquiries for properties located in New York through this site. Ingrid Quinn NMLS #211652 BK#0923637 www.ScottdaleMortgageExpert.com

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