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Home - Santa Fe Real Estate Guide - - MORTGAGEMATTERS - JIM GAY

Net branch lenders have sprung up over the last fewyears. Net branches call their com­pa­nies “mort­gage banks” and are pri­mar­ily mort­gage bro­kers who have banded to­gether to form com­pa­nies with cen­tral­ized un­der­writ­ing and pric­ing. A pric­ing per­son in the com­pany sets the rate and cost of loan of­fer­ings each day.

Credit unions nor­mally have com­pet­i­tive rates. They of­fer mort­gages as well as home-eq­uity loans and con­sumer fi­nanc­ing. They are owned by their mem­bers.

Mort­gage bro­ker­age com­pa­nies, even with full com­pli­ance of new reg­u­la­tions, re­main in a po­si­tion to com­pet­i­tively price their mort­gages. They rep­re­sent mul­ti­ple in­vestors and have the flex­i­bil­ity to con­sider all facets of a loan re­quest and the unique sit­u­a­tion of each bor­rower. In a sense, they are the old-time method of fi­nanc­ing.

In­ter­net lenders ap­praisal is paid, but their ads are re­ally tempt­ing, aren’t they? Be very care­ful.

The best ad­vice is to shop hard and pick who you be­lieve will rep­re­sent your best in­ter­ests and eco­nom­i­cal needs.

Jim Gay was a real-es­tate bro­ker for over 20 years and has been a con­sul­tant to For­tune 500 com­pa­nies. He is cur­rently a bro­ker/owner with­The Mort­gage Place, Inc. (505-986-9080) and can be reached at jim@jim­gay­home­m­o­rt­gage.com

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