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MORTGAGE BANKER vs. MORTGAGE BROKER Flagship Financial is a mortgage banker, which means we lend our own money for your loan. While Flagship has the ability to broker some of the tougher, more unique loans to hundreds of investors, the majority of our loans are funded by Flagship. It is our mission to lend our own money as often as possible which allows us to save you money by delivering the lowest possible rate and closing costs. Mortgage Broker A mortgage broker is a middle man; he does the loan shopping and analysis for the borrower and puts the lender and borrower together. Due to this business structure, the broker charges an additional fee & higher closing costs for his services than a banker. The interest rate is always higher on brokered loans since these investors need to build in cushion for higher risk loans. The process of brokering can be more difficult because a second party is making the decision on your loan approval. This can make for a frustrating process. Getting timely feedback on the status of your loan can often times be a challenge. The broker is only able to give second-hand information. However, if you cannot qualify for mortgage financing through a mortgage banker, a brokered loan may be your only alternative. Mortgage Banker As a mortgage banker, Flagship can give you direct loan approval. We can let you know immediately if we can finance your home purchase, what the loan terms & costs will be and what is expected from you to get the final loan approval. If there are any hiccups or issues that need to be addressed, we discuss this with you immediately at or before time of application. For example, if you have a collection that needs to be paid before closing, or if you are waiting to access the down payment funds needed for closing, we work with you to establish timeframes & provide you with the steps you need to take to get you to closing on the closing date listed on your contract. As a mortgage banker, not only does Flagship make the process easier but we can also save you middleman fees & offer lower rates! We almost always beat the banks! How can Flagship beat the banks? While Flagship lends our own money for the loans and services a handfull of mortgages, the majority of our loans are sold to the secondary market AFTER closing. We have agreements in place with the nations largest, most reputable banks such as Chase, Countrywide, Citibank, Wachovia and many, many more...These banks agree to buy our loans after closing at the rate we locked in for our customer. How do we determine how to price your rate? We have access to each bank's rates as if we are a direct employee of that bank...the rates we see are not the rates you see if you were visiting say, Bank of America's website. We compare each bank on a daily basis, all day, throughout the day to determine who is offering the lowest rates for each specific loan product, from adjustable rate mortgages to fixed rate products. On one day Wachovia may decide to pull back on 30 year fixed rate mortgages by slightly increasing their rate, becoming less competitive. Meanwhile, Chase may be competing for more 30 year loans to add to their portfolio resulting in offering a lower 30 year fixed rate to generate more business. Continuing with that example, if your loan application is with Wachovia and your rate is not locked in, you may be stuck locking in at that higher 30 year fixed rate if/when they decide to bump up their rate. However, if your loan is with Flagship, you are protected from the fluctuations that may take place within one banking institution. We would plan to sell your loan to another bank. These changes in rates occur daily and Flagship is on top of it! This is how we determine pricing for our loans and this is how we can guarantee the lowest rate available for those that qualify! Our closing costs are low too! If you were to close your loan directly with one of the banks listed above, you will notice that their closing costs are higher. This is because national banks have more overhead expense. As a smaller, locally owned & operated mortgage banker, Flagship is able to pass our lower expenses on to you through lower closing costs! Last but not least, if we cannot qualify you for financing through Flagship, we can always visit brokering your loan. We have impeccable business relations with the top subprime banks & investors and we are extremely knowledgable about all of the loan products offered through these banks. "If Flagship can't fund the loan and Flagship can't broker the loan, there is no loan. We are your one stop shop!"
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