The Scoop on Home Loans

The Difference Between Mortgage Bankers and Big Box Banks

My cousin is getting married in a couple weeks, and the man she is marrying is in the process of selling his current house so that he can move in with my gorgeous cousin after they tie the knot.  He got an offer on his house a couple of months ago.  He counter-offered and went back and forth with the buyer a bit before agreeing on a price.  The couple buying his house is in excellent financial standing, and is even planning on putting down nearly half of home price in cash as a down payment.

They still haven’t closed.  They don’t know when they are going to be able to close.  You know why?  Because this couple used a Poopy Big Box Bank to get their mortgage.  Poopy Big Box Banks do a really great job of providing checking and savings accounts.  They do not do a good job on mortgages.  I won’t say the real name of the bank they are using, but when my cousin told me how many problems they were having, I immediately thought, “I wonder if the buyers are getting their mortgage through _____,”
because I have heard these nightmare stories over and over.  Then my cousin mentioned how the folks were in fact using Poopy Big Box Bank.

Now, my cousin and her soon to be husband are in a pickle since they’d planned to use the money from the sale of his home as a down payment for a new home. 

The moral of this story:  Using the Poopy Big Box Bank not only hurts you, but it hurts my cousin, and NOBODY messes with my cousin, you hear?

That’s not really the moral. 

Anyway, to drive home this point a bit further, last week a client called my ole Boss James.  This client has been a lifetime banker with another Big Box Bank that is actually well known for great customer service and loyal clients.  So this guy naturally called them when he wanted to refinance his house.  And the nice customer service agent said, “Oh we’d love to!  We can maybe close in January?”

We’re in October, folks.  The client called James.  And you know what James Beaver said? “Oh we’d love to!  Closing in 25 to 30 days sound good for you?  And by the way, want to grab coffee or lunch later this week?”

In honor of James Beaver, and his love of charts, I offer you the following:

Myth

Truth
Mortgage Bankers are more expensive than Big Box Banks.  You end up paying more money for a loan. My ole Bosses are usually the same price or cheaper.  They are also more knowledgeable, which saves you more money.
My bank already has all my information so things will go quicker. Your bank has your checking account number and your name.  All the other documents, like pay stubs, W-2s, etc. will have to be collected by anyone providing you a loan. James and Chad close almost every loan in 30 days.
My bank has a big name, so I trust they know what they’re doing. Envoy Mortgage is in the mortgage business.  James and Chad do home loans every single day.  They know more about mortgages than anyone at the Big Box Bank. 
I’ll get great customer services. (You probably aren’t thinking this, but still.) James takes calls from clients on Friday nights.  And when you call, he knows who you are.  He doesn’t ask for your loan number and social.  He says, “Oh hey so-and-so!  What’s going on?”

And the last time I checked, the Big Box Banks don’t office in a charming bungalow in the Heights.  Again, the Big Box Banks are fine for some things.  I have my checking and savings accounts with them.  But knowing what I know after snooping around mortgage companies for the past three years, I would never use the Big Boxes for a mortgage. 

As always, please feel free to call or email the ole Bosses with any questions.  Now, off to help my cousin fill out the application at the homeless shelter.