Different kinds of mortgage lenders are available, from tiny little mom and pop stores that only provide mortgages to massive international institutions that also pitch credit cards and student loans. And then there are the banks that do all the “shuffling and dealing” for you, amassing great piles of cash for your loan while shoving as many requirements as they can into your budget. Then there are the services offered by these Mortgage Lenders in San Diego, who seem to cater to every kind of need you can imagine. And if you happen to be in the process of applying for your first mortgage, you may not be aware of all these options, so it pays to have a good idea of just what they are before you begin.
There are two main groups of services offered by wholesale mortgage bankers today. The first group consists of the kinds of direct services most people think of when they think of lending money. These services include putting together the paperwork for your loan application, advising you on which lender to use (if you’re a beginner), and even processing the check you receive at the end of the day. These “professional” services are usually offered by the largest banks in your area and maybe the most expensive. Still, they are also the most convenient because the more diminutive “bank-banks” are already established and have relationships with the larger processors and banks.
The second group of services is less focused on servicing borrowers and more geared toward the lending industry. These “wholesale mortgage companies” tend to have loan departments with lower staff and less training than their bank cousins. They do not have to do nearly as much paperwork, so their fees for these services are typically relatively low. Because they are not service-oriented, however, the wholesale lenders may not have access to the entire inventory of mortgages in your community. They may have only a few in-stock loans that have been pre-approved and have an interest rate lower than the going rates for your state or city. This is important to know since some neighborhoods have a shortage of good, pre-approved loans, and you want to make sure you are getting a good deal from the San Diego Mortgage Lenders company.
The third group of “stores” is independent warehouses and retail chains that deal solely in pre-approved short-term loans. This group includes small “mom and pop” shops and brokers who work for local banks or mortgage companies. In some cases, they will deal exclusively with the short-term wholesale lenders, and in other cases, they will work with both. Their fees for their services are typically higher than the other two groups of wholesale mortgage lenders, and their loans will probably not carry the same “premium” or “ags” that the “big boys” charge. If you are looking into short-term mortgages for your property, it is probably best to stick with these types of lenders if you are shopping locally.
The final category is the more prominent “bank-based” or “mortgage servicing companies.” These are the banks and mortgage servicing companies that are the mainstay in the secondary market. They are not “storefronts,” but there is still some competition between them. Their fees are usually higher, and their loan programs tend to be more specific. It would help if you did a little research into their costs and expenses before doing business.
In conclusion, we recommend that you first look at the “storefront” lenders mentioned above. Then compare the fees of each then narrow down to three “bank-based” banks. Use those as a foundation to start talking to a local bank manager about your short-term loans. If all of the information looks right, maybe we can get you pre-approved by one or two of the banks, but you will be working with one of the bigger stores in most cases. If you do that, you will be able to focus on getting pre-approved for your loan directly through the bank instead of through a mortgage servicer.
