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- Advantages of a Direct Mortgage Lender
Advantages of a Direct Mortgage Lender
- What is a mortgage lender?
- What does it mean when a loan is in underwriting?
- How long does it take to go from underwriting to closing?
- What happens after underwriting is approved and conditions are met?
- How long does it take for an underwriter to make a decision?
- Is it easier to get a mortgage through your own bank?
As a direct mortgage lender, our team works to manage the loan approval and funding process within our lending organization rather than brokering the loan to an outside lender.
One advantage of this approach is having more direct communication with the people involved in reviewing and approving the loan. This can help us address questions, identify potential problems, and keep the financing process moving.
Mortgage brokers, on the other hand, work with outside lenders to arrange financing for their clients. Both approaches can serve borrowers well. What matters is the lender’s underwriting process, communication, and ability to complete the financing within the transaction’s deadlines.
As a direct mortgage lender, our company and underwriting team can review a buyer’s financial qualifications upfront. This allows us to determine whether the borrower meets the lending requirements for a particular loan amount, subject to applicable conditions.
The advantages of this approach include:
- The ability to identify and address potential financing problems early.
- More direct communication with the underwriting team.
- Greater confidence in the buyer’s financial qualifications before an offer is accepted.
For sellers, this additional review can provide peace of mind. Knowing that a buyer has undergone a thorough underwriting evaluation can help reduce uncertainty about the financing process. 
However, even when a borrower has received underwriting approval, unexpected issues can arise. Some circumstances are beyond the borrower’s control and may not have been known to the lender or loan officer during the initial review.
For example:
- A title report may reveal an unexpected issue involving the property.
- A judgment or lien against the borrower may be discovered during additional financial or public-record reviews.
- An undisclosed lien may be found against the property.
- An unpaid obligation or other title-related issue may surface shortly before closing.
Sometimes these problems arise at the eleventh hour. Having an experienced lending team can be particularly valuable when additional documentation, investigation, or a financing solution is needed.
For example, if a lien is discovered shortly before closing, the lender and title company may need proof that it has been satisfied or arrangements that comply with the applicable loan and title requirements.
In certain circumstances, a direct lender may have flexibility to evaluate exceptions or alternative solutions through its underwriting and management teams. However, any exception depends on the lender’s requirements and the specific circumstances. Not every issue can be resolved, and closing may need to be delayed.
That is why we emphasize thorough upfront underwriting and maintaining clear communication throughout the transaction. Our goal is to identify problems early and help buyers and sellers reach a successful closing.
Tom discusses additional advantages of upfront underwriting in his videos on Screening Buyers and Underwriting Approvals.
About the Tom Parke Mortgage Team
The Tom Parke Mortgage Team specializes in residential real estate financing and emphasizes thorough upfront underwriting reviews to help identify potential financing challenges before they affect a transaction.
Tom and his team bring extensive mortgage lending experience to the home financing process, with an emphasis on communication, preparation, and helping borrowers navigate loan requirements.
Tom may be reached at 415-828-5004 or through the Tom Parke Mortgage Team website.
Kathleen Daniels is the broker-owner of KD Realty in San Jose and the owner of NeedProbateHelp.com. She is a Certified Probate Real Estate Specialist representing sellers of probate, trust, and conservatorship real estate exclusively in Santa Clara County.
Throughout her real estate career, which began in January 2003, Kathleen has worked with numerous mortgage lenders. Her experience with Tom and his team demonstrated the advantages that an experienced, responsive lending team can bring to a transaction.
In fact, the lien issue Tom discusses in the video involved one of Kathleen’s transactions. Just two days before closing, an unexpected lien appeared on the buyer’s credit report. Working within a short contingency period, Tom’s team obtained approval to fund the loan and allow the transaction to close while awaiting written confirmation that the lien had been satisfied.
That experience illustrates how an experienced lender may be able to evaluate unusual circumstances and find an acceptable solution. Such exceptions are case-specific and are not guaranteed.
For Executors, Administrators, and Successor Trustees selling estate real property, evaluating a buyer’s financial qualifications is an important part of selecting a purchase offer.
If you need to sell real property in probate, under a trust, or through a conservatorship in Santa Clara County, contact Kathleen Daniels at 408-972-1822 to discuss your circumstances and learn how her specialized real estate services can help.
Understanding the differences between a mortgage broker and a direct lender, including the availability of upfront underwriting, can help sellers evaluate the financing strength of competing offers.
Contact Kathleen For a Real Estate Consultation
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