3 Avenues of Lending Right Now (& it’s not all pretty)
We seriously encourage our buyers to use “correspondent lenders.” We HOPE the buyers buying our Austin listings use them because the alternative (going retail, big bank, for example) seriously increases the risk of running into delays and weak communication. We can back this up all day long with a simple review of any delay we’ve seen over the past 18 months.
Delays happen in real estate lending but when they do, you absolutely need good communication from the lender as to why, when and what next. One would think this would be easy, basic business, right?
Deborah Ginac, CapStar Lending in Austin, points out that there are three avenues of lending right now:
Retail: big banks as in Wells Fargo, etc.
Mortgage Broker: outsources underwriting to a big bank/investor. They have zero control over the file once it leaves their care. They have no relationship with underwriting and may or may not know the underwriter. They cannot speed the process up or even anticipate what the underwriter will say.
Correspondent Lender: This lender has an in-house underwriter, knows the underwriter and controls the loan process from beginning to end.
Thanks to the talented Heather Hill, Closing Coordinator for The Nelson Project (Keller Williams in Austin, TX), for bringing this succinct outline to the table today and for her amazing ability to help buyers and sellers through the process, even when it’s not pretty.