Comparing Mortgage Bankers
What to Look for When Comparing Mortgage Bankers
Comparing mortgage bankers? Hey, kudos for doing your due diligence. As you talk to companies, keep in mind that customer service and loan knowledge are only the beginning. It’s after the sales department passes you on to the processors and underwriters that the fate of your loan (and the future of your refi) will be determined.
So, how do you tell if a company is good at follow-through and closing?
Step 1: Look at the reviews of past customers. This will start to paint the picture of how efficient a company is at closing.
Step 2: Look for specialty certifications and awards, in particular Mortgage Bankers with Tier-1 Status. This status comes with benefits, like better pricing and faster close times, that pass to you, the borrower.
What is Tier-1 Status for Mortgage Bankers?
Tier-1 Status is awarded to mortgage companies with great closing track records after they prove to wholesale lenders that they follow the best practices for closing loans.
Before being awarded Tier-1 Status, Mortgage Bankers are judged on:
- The consistency of their loan volume
- The quality of loan submissions
- And their pull-through ratio (percentage of loans they request rate-locks for against the number of loans they actually close).
After this passing this rigorous assessment, a Tier-1 Mortgage Banker and its customers benefit from the special deals and additional resources available only to elite mortgage companies.
How Tier-1 Status Benefits You, The Borrower:
- Lower rates. Rather than chase rates and float from lender to lender, a Tier-1 banker instead focuses on building strong partnerships with a few proven lenders. Those lenders reward higher volumes of business by offering special, lower rates to you, the borrower.
- Faster, efficient closings. Because Tier-1 Banker have gained a reputation for passing along qualified and complete loans, lenders give them a delegated team of underwriters to work on their loans. This leads to a faster, more efficient close for you, the borrower.
- Better pricing. When the processing and underwriting of a loan is streamlined, then it costs less to close your loan. These savings pass down to you, the borrower, resulting in lower closing costs and overall better pricing.