In today’s Parker Mortgage Tip, we will summarize the differences between a Loan Officer from a Bank and Colorado Mortgage Brokers.   If you are not aware of the impact that they may have when you get your next mortgage Parker Colorado or Colorado home loan, it may cost you tens of thousands of dollars.  I would like for you to be armed with the right information. 

There are Four Major Differences:

•  Compensation:  Bank/Credit Union Loan Officers are paid a salary and Colorado Mortgage Brokers are typically “Commissioned”.  By itself, neither is bad.  However Banks would like for you to think that you can get an unbiased Parker mortgage or Colorado home loan from them.  Banks spend a lot money conveying this message which isn’t necessarily true.

• Loan Programs:  Banks have limited mortgage programs and Colorado Mortgage Brokers have a lot more loan programs available to them since they have numerous lenders to choose from.  It’s important for you to have ability to get the “Right” mortgage Parker Colorado or Colorado home loan.  You don’t want to get the “Wrong” home loan from the Bank just because that was all they had available. 

• Interest Rates:  As I said above, “Compensation” by itself is neither good nor bad.  However when you put combine all the money that the Banks have to pay their staff and all of the other expensive overhead costs, you are more likely to get a higher interest rate.  You don’t want to become a victim by paying higher interest rates on your Parker mortgage or Colorado home loan.   Again, Colorado Mortgage Brokers have very little overhead so we can normally provide you with a much lower rate on your mortgage Parker Colorado.  Makes sense, doesn’t it? 

• Qualifications:  Banks/Credit Unions have their own standards.  They can hire “Anyone”.  However with Colorado Mortgage Brokers, we have to meet all the Colorado DORA’s Division of Real Estate mortgage broker licensing requirements.   I personally believe that we are much better qualified to advise you on your Parker mortgage or Colorado home loan.  We have proven our competence whereas Loan Officers haven’t. 

How does all this save you from needlessly spending tens of thousands of dollars on a mortgage Parker Colorado?   If you get the “wrong” loan program because it wasn’t available at the Bank and/or the Loan Officer wasn’t trained/qualified to properly advise you and/or you get a higher interest rate due to their expensive overhead costs, you may pay for it for many years.   Just ask all the home owners who got a “Bad” loan and who are now in foreclosure.   You don’t want to be a victim. 

The next time when you go to get a mortgage Parker Colorado or a Colorado home loan ask yourself, “Do you want to get it from a unlicensed, probably a young, minimum waged Bank Loan Officer who can only offer you their few loan programs which may or may not be “Right” for you and at a Higher interest rate?”   I think I know your answer.   I want you to get the “Right” Parker mortgage or a Colorado home loan from Colorado Mortgage Brokers. 

The next Parker Mortgage Tip will address things you should ask Colorado Mortgage Brokers when you shop for your next mortgage Parker Colorado or Colorado home loan.

In today’s Parker Mortgage Tip, I would like to further explain the difference between a Loan Officer from a Bank and Colorado Mortgage Brokers.   They can significantly impact your next mortgage Parker Colorado or Colorado home loan. 

Interest Rates:

Banks Usually Have Higher Rates:  As you can imagine, banks have large overhead expenses.  They have to maintain and finance their own “Brick and Mortar” buildings.  Banks also have to pay salaries for their employees, health care benefits and 401K plans, etc.  Don’t forget marketing expenses.  Those bank TV commercials aren’t cheap!  Banks start off in the “Red” each month due to all these expenses.  The way for them to stay afloat is to make money by charging higher interests on Parker mortgages and Colorado home loans.  They already nickel and dime you for their normal bank fees such as check return, ATM, insufficient funds charge, etc, but they really make their BIG MONEY by charging you a higher interest rate on Colorado home loans.  Whenever you get a higher interest rate on your mortgage Parker Colorado or Colorado home loan, you can pay tens of thousands of dollars more than you should over the life of your Parker mortgage.

Colorado Mortgage Brokers Usually Have Lower Rates:  Most of the Parker Mortgage Brokers I know work from home.  I do and I enjoy it.  There’s almost no overhead so we can provide you with a lower interest rate on your mortgage Parker Colorado or Colorado home loan.  Banks rely on us!  Since Banks don’t pay us a salary or our marketing costs for bringing them a mortgage Parker or a Colorado home loan, they pay us a fee.  As a Parker Mortgage Broker, I will usually beat the Bank’s closing costs and/or interest rate by at least .125% to 25%.  That is lot money that you can save on your Parker Mortgage over the life of a Colorado home loan.  

Qualifications:

Banks Make Their Own Standards.  Whenever you go into a bank or credit union, the building looks fantastic.  All the bank employees are dressed very nicely and everything looks so professional.  Let me use a simple example.  When you walk into a high end car dealership, you expect a certified, well trained, experienced mechanic to properly diagnose and service your Mercedes, BMW, etc., right?    Shouldn’t you expect the same from a Bank?  Unfortunately this may not be the case.  Banks can hire ANYONE and train them as little or much as they please.  There is NO governmental oversight!   Let me ask you a simple question about your own experiences when you got a new job.  How much training did you actually get?  Did you end up learning most of your job on your own?  Were you paid what you were worth?   Banks, like most other businesses, will usually pay the least amount that they get away to get the job done.  My first job in the mortgage Parker Colorado and Colorado home loan industry, I was paid about $350 per loan.  It wasn’t a Bank, but the practice was the same.  I soon learned that the lender was making about $5,000+ per Colorado home loan and I was being paid “Peanuts”.  I also discovered that the lender was significantly overcharging their borrowers for their Parker mortgage Colorado or Colorado home loan.  I resigned.  I would not participate in any scheme to rip people off!    

Colorado Mortgage Brokers Have to Adhere to Higher Standards:  Colorado Mortgage Brokers had to become licensed almost two years ago in order to originate a Colorado home loan.  Bank and Credit Union Loan Officers don’t have to be licensed!  As a Parker Mortgage Broker, I had to:

• Be Fingerprinted and Pass a Background check by the Colorado Bureau Investigation
• Secure a Surety Bond for Mortgage Broker for $25,000
• Carry errors and omissions insurance for $300,000
• Participate in 40 hours of education that covered Federal and State Law, mortgages, and Businesses and Trade Practices
• Pass a comprehensive two-part written Colorado Mortgage Licensing Exam
• Meet and Adhere to all of Colorado Mortgage Broker current licensing requirements. 

Go back to my first posts about DORA, you will see that it isn’t easy to achieve the elite status of Colorado Mortgage Brokers.  DORA inactivated 4,560 licenses in August.  Most people can’t meet these high requirements.  Bank Loan Officers are exempt and I bet you that they are not trained nor qualified to properly advise you.  

Ironically one of my best referral sources as a Parker Mortgage Broker is the Banks.  When borrowers go to the Bank and realize that the Loan Officer (a lot of times a young kid) didn’t have the foggiest idea of what he/she was doing and/or they didn’t have the loan program that they wanted, they called me.   

The reason for these posts is that I not only want you to get the “Right” mortgage Parker Colorado or Colorado home loan but also a “Good” one.

The next Parker Mortgage Tip will summarize these four major differences because they are extremely important when you start deciding on who will help you with your mortgage Parker Colorado or Colorado home loan.

Here is today’s Parker Mortgage Tip.  I want to further explain why you should check with DORA as your first step in your mortgage Parker Colorado home loan process.   Don’t start with the Better Business Bureau (BBB) for selecting one of the Colorado Mortgage Brokers to help you get a Parker mortgage. 

• The BBB is a great resource for checking out a business, but it isn’t appropriate when it come deciding who you should trust to do your Parker mortgage.  Since DORA is responsible for overseeing the real estate industry professions, they are a much better source.  They license and develop the standards and enforce these standards for appraisers, real estate agents, and Colorado mortgage brokers.  DORA, not the BBB, has the detailed information you need to start your Parker mortgage or Colorado home loan process. 

• The Better Business Bureau reports at the company level.  You won’t be able to get any information on their individual employees.  If you want to find out about Colorado mortgage brokers qualifications, you have to check with DORA.   Remember their website where you can quickly determine whether your Parker mortgage broker is licensed.   Don’t take a shortcut and skip this first step.    

• The BBB can give a high rating without knowing whether the individual helping you with your Parker mortgage is any good.  We all know that there are good and bad employees in every company.  It is no different with Parker mortgage companies.  DORA plainly and clearly posts denied Colorado mortgage brokers and information on the Colorado Mortgage Brokers who have or had disciplinary actions.  You got to have this vital information so can see if the Colorado mortgage brokers you are considering have a valid license.  If you do nothing else, please take time to research your Parker mortgage broker. 

I know that I’ve really been emphasizing using DORA to do your homework on selecting your Parker mortgage broker.  You can still use the local BBB to see if the Parker mortgage company has any complaints.  Take a moment and bookmark DORA’s website so you will have it handy when you start your Parker mortgage or Colorado home loan search.  http://www.dora.state.co.us/real-estate/index.htm.  

Tomorrow’s Parker Mortgage Tip will reveal whether you should get your Parker mortgage or Colorado home loan from a local bank/credit union or from a licensed Parker Mortgage Broker.