A Nevada State Broker
Mortgage loans generally fall into two categories, Wholesale Lenders or Retail lenders. Wholesale lenders typically offer loans to mortgage Bankers or Brokers at a discounted cost. Then the Banker or Broker adds their fees to this lower wholesale rate, this is called the Retail cost. Bankers are correspondent Lenders that originate and fund in their own name, then typically sell this loan in the secondary market. Brokers act as an intermediary between borrowers and lenders, they do not use their own funds, but instead help consumers compare a variety of quotes from different lenders, the final cost is generally slightly different, either cheaper or higher.
We did our homework, we have found the very best wholesale rate that this country has to offer. Our Broker paid compensation is 2% between 2.5% over the wholesale rate for most of our loans products with zero origination fees, so our rates and cost stay very competitive. This retail cost is typically 2% between 4% over the wholesale rate for most retail lenders. This compensation is paid by the wholesale lender to the Banker or Broker either by increasing the rate or a borrower paid option to provide the borrower with a lower rate. Fees paid to the Banker or Broker is a combination of the compensation paid by the Wholesale Lender and additional application fees charged either by the Banker or Broker. So it’s best to get a Good Faith Estimate upfront before moving forward with your choice of lender.
Bankers and Brokers both help procure the right mortgage for a borrower, the basic difference lies in that mortgage bankers represent a specific financial institution that lends their own money, which typically have stricter guidelines. In contrast, the broker is not bound to any one lender or financial institution but is free to shop around for a mortgage based on the borrower’s individual needs. Both types of lending have their advantages, and what a borrower decides on, depends on their current circumstances. However, using a mortgage broker can save a borrower the time and effort of doing research on their own. Be sure to compare the cost to those of other lenders as you weigh in your options.
Getting a mortgage from a mortgage Broker might be a good option if your credit history is less than stellar or unique, since a mortgage Broker has multiple relationships with wholesale lenders and could get you approved under less strict requirements. You’ll work with the Broker to complete all of the steps in the application process, and the Broker will coordinate with the wholesale lender for approval. Brokers have less overhead and liability, therefore their cost is typically lower. Brokers also have the ability to shop Private Mortgage Insurance(PMI) options so your monthly mortgage payments are much lower.
A broker will also be able to help you find competitive rates and terms, since they can shop around for you using their wholesale lender contacts. A Broker working on your behalf could save you time from having to do the research yourself. Nevada is a “brick and mortar” state, this means that any and all mortgage brokers must have a physical office located in the state of Nevada. This office is a License Mortgage Broker with the State of Nevada.
