June 27, 2017
When financing real estate, borrowers soon discover they
have more options than they perhaps originally thought. They must decide how
much money to put down as well as pick out the right loan program. Once the
loan program is decided upon the borrower then decides which rate is best for
their particular situation. And we haven’t even touched on the property itself.
Borrowers must decide not only where they want to live but what type of
property they want to purchase. But before any of that, borrowers must decide
where they want to get their loan from, a bank or a private lender. What are
the differences? Is a loan officer at a bank the same as a loan officer at a
Typically at a retail bank, the bank down the street or
downtown, the loan officer is there to accept the loan application and document
the loan file. The loan officer has a list of loan programs the bank offers and
reviews them with the applicant. Once the loan application has been submitted,
the loan officer then turns the loan file over to corporate underwriting, most
often at another site and usually in another city at a central underwriting
A loan officer working with a private lender provides the
same services but takes it a bit further. A bank is restricted to the types of
loans it provides as well as the nature of the borrower. A private lender can
take a more holistic approach and craft a loan program around both the
characteristics of the borrower as well as the property type. Banks rarely have
For someone trying to buy and refinance a sort of “outside
the box” property that doesn’t fit in the bank’s rigid guidelines, it’s the
private lender who can step in and approve a loan application that might not
get to that point at a bank. Loan officers at a private lender work closely
with their clients from start to finish and there is no hand-off to a corporate
underwriting center and establish a working relationship.
For more information or questions about mortgage loans, please call (855) 757-8748.
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