Tom Parke of Mason-McDuffie Mortgage Corporation discusses the advantages of a direct mortgage lender.
Mortgage Broker vs Direct Lender
As top direct mortgage lenders, we close and fund all of our loans in-house. The benefit to the buyer in this scenario is, we, my team, we are not brokering the loan out to a third party. We are not sending it outside of our company where there is another decision maker that works for some other entity deciding on the borrower’s ability to purchase this home or borrow this amount of money.
As a direct lending mortgage company, our company and our underwriter is able to screen the buyer up front and put the stamp of approval on it, so to speak, and say this buyer is approved and qualified to borrow this much money. We are making a lending commitment as a company to lend this borrow this much money that is approved by our company.
• That means we can approve it fast.
• That means our approvals are guaranteed.
• The lending commitment is solid and it is going to go through.
Ultimately, the way this benefits the seller will have the peace of mind and is going to be able to sleep at night knowing that if the buyer has been screened and approved by Mason McDuffie Mortgage, that buyer has a guaranteed ability to purchase this home.
No matter how thorough the lender is upfront during the pre-approval, the approval and the underwriting approval with the borrower, underwriting can approve the borrower for the borrower’s ability to purchase the home for X amount of dollars and borrow a certain loan amount for X amount of dollars.
Even with an underwriter’s approval, there can still be turbulence. There can still be things that pop up that are beyond the borrower’s control and completely something that the underwriter and the loan officer were not aware of. Such as:
• A title report might get pulled and there is some nuance with the home that nobody was aware of before. Not the listing agent. Not the current owner. Certainly not the buyers, and not the lender. There could be a thorough search in the borrower’s background showing that they had a judgment against them that no one was aware of, not even the buyers were aware of.
• There could be a lien or something against the buyers that no one was aware of.
• There could be a lien against the property that nobody was aware of.
• There could be something unpaid that all parties were legitimately unaware of.
Sometimes these come up at the 11th hour.
It is good to be teamed up with a lending partner in that case, even if it is your backup lender, that should you need to fall back on them they can come through and come up with a creative solution.
Giving a specific example, it has happened where at the last minute, a lien has come up and something needs to happen with that lien. Either we need to get proof that it has been satisfied or we need the lender to basically allow the loan to fund and the purchase to close with proof of that lien being satisfied to come at a later date.
Being a direct lender there are certain instances where we are able to have a little bit of flexibility and make judgment calls with our senior management and fund loans with that information still forthcoming as long as the borrower has been thoroughly screened, and reviewed and approved by underwriting upfront.
The Tom Parke Mortgage Team at Mason-McDuffie Mortgage Corporation is a direct mortgage lender specializing in residential real estate finance for home purchases, refinances, lines of credit and construction renovation.
Top Mortgage Lenders by Volume
The Tom Parke Mortgage Team has earned “President’s Club” Honors every year since 2009 and is ranked among the Top 1% of all loan officer teams nationwide for production.
The Team’s goal is to enhance the financial lives of their clients, business partners and colleagues. With more than sixteen years in the financial services industry and after having closed the home loans for over 2,200 families (and counting!), The Tom Parke Mortgage Team offers a wealth of experience and knowledge in the home financing process.
Tom may be reached at 415-828-5004 or www.TomParke.com.
Kathleen Daniels is the broker-owner of KD Realty in San Jose and owns and manages https://NeedProbateHelp.com. While Kathleen specializes in probate and trust real estate sales, she also represents buyers and sellers of non-probate homes.
Kathleen has worked with many lenders since she started her real estate career in January 2003. Some lenders were okay, some were good, yet none are as great and Tom and his team. More than once they demonstrated the advantages of working with a direct mortgage lender.
The example Tom mentions about the lien that showed up 2 days before closing was a transaction with one of my clients. We were on a very short contingency. They funded the loan and allowed the purchase to close pending written confirmation that a lien that showed up at the 11th hour on the credit report was satisfied. Experience the advantages of a direct mortgage lender vs bank. With most banks, we are nothing more than a number and do not get high-tough personalized service.
If you need to sell a home, or if you are in the market to buy a home, hire an agent that has a team of experienced professionals to serve you. Call Kathleen at 408-972-1822 to discuss your needs and learn what Kathleen and her team can do for you.