To become a mortgage banker / direct lender, the company applies for a warehouse line of credit to fund loans in their company name so that it appears that they are the actual lender. When in fact, they sell loans to wholesale lenders / investors with whom they are approved. This enables them to recreate their own rate sheets and add a considerable margin to the rate and fees. Mortgage Loan Officers that work for that company don’t see the true core pricing being offered in the marketplace, but are forced to sell consumers a higher interest rate with more fees.
DISADVANTAGES OF WORKING WITH A “DIRECT LENDER”
Considering Working with a Direct Lender or a Large Bank? Here are some key disadvantages to keep in mind:
Higher Costs:
Direct lenders pass higher interest rates, fees, and closing costs onto consumers due to their large operational expenses, including offices, staff, legal teams, marketing, and high-paid executives.
Service Limitations:
Slower service times can affect your ability to provide timely assistance to clients.
Less personalized attention means you and your clients may feel like just another number.
Limited Loan Options:
Direct lenders typically offer fewer loan programs, restricting your ability to find the best solutions for your clients.
Understanding these disadvantages can empower you to make a more informed decision when choosing where to secure your mortgage loan.
SOLUTION
A reputable mortgage broker without the high overhead to operate can offer the excellent interest rates and has the luxury to cut down fees that the larger bankers/lenders demand. Being able to offer better interest rates and lower closing costs for the exact same loan saves you money.
If you are a consumer looking to purchase a home or refinance your existing mortgage loan, you would save more money by utilizing a smaller mortgage broker with extensive experience in the mortgage lending industry.
Layton Mortgage is exactly this. We have over 25 years of experience in the mortgage lending industry. We intentionally keep our operations smaller in order to keep our overhead cost down to pass the savings on to you, the consumer. We guarantee that our interest rates and fees will be lower than any direct lender or mortgage banker.
Benefits of using a Mortgage Broker:
• Excellent Interest Rates
• Lower closing costs
• Better and faster service
• More personalized attention
• Wider variety of loan programs to choose from
Ready To Get Started?
Ready To Get Started?
Layton Mortgage is a multi-channel mortgage broker
that offers excellent rates and a diverse array of
mortgage loan products for Purchase, Refinance & Reverse.
CONTACT INFORMATION
Name: Troy Rakes
Title: Loan Officer
Phone Number: (904) 910-4198
Email Address: [email protected]
NMLS License: 1447976
972-769-5242 | LAYTON FINANCIAL SERVICES CORP | NMLS # 1922806 DBA: LAYTON MORTGAGE | www.LAYTON-MORTGAGE.COM
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