Mortgage Brokers Submitting a Deal to a Wholesale LenderJack Miller
Whether you’re a one or two person shop or a large, correspondent lender that lends across the state or across the country, you know there are times when you get a deal in house that makes sense but just doesn’t quite fit the profile your loan programs need. Perhaps it’s an old client that found a small office building that needs some work. The building does need some repairs before it can be leased out and it’s in an excellent area with high traffic, but the current condition means it won’t quite fit in a retail bank’s portfolio. Or, you do have a few products that could possibly work but after speaking with your underwriter you realize there’s just no way you can fund the deal. So you decide to broker the loan to someone who can.
At Gelt, that’s our specialty. We work directly with third party originators. In fact, when we work with third party originators we know the loan officer submitting the package is experienced in mortgage lending and knows how to identify prospective clients. You find the deal and the wholesale lender takes over from there.
A typical scenario works like this- one of your clients calls you up and needs short term financing to flip and flip a property. He goes over the possible project telling you what the offer will be and how much he will need for financing. Or maybe it’s a new client looking for funding. You ask all the right questions and get a feel for which particular program that person could qualify for. And this is one of the more important stages. Understand completely how the funds will be used, qualifying the applicant and telling the story. The more you know, the better proposals we can make that will get your clients over the finish line.
With the information about the property, price and exit strategy, we can provide the financing solutions you need. If you’re not sure which program will work, give us a call and we’ll provide the guidance you need, making sure the deal will work. If a project doesn’t quite fit into one of our existing programs, if it makes sense we’ll make a new one. With this information, you return to the client and explain what might be done.
You’ll need to complete a loan application and a loan summary. The loan application can be submitted on a standard 1003 or you can complete an initial request on our website. The loan summary will be an outline regarding the various phases the project will have. It is here that you and your client tell us the story about the plans. Once the application and summary have been completed, forward those to us along with a new credit report and we’ll get to work.
At this stage, you’ve done the important part. You found the deal. We process the loan internally, order all the necessary documentation such as a title report, appraisal, inspections and other third party services needed to close the loan. We underwrite the loan with no need to forward the package to third parties, the loan decision is made right here in our offices. Once the loan is approved, papers are drawn and sent to the settlement agent. Because you’re listed as the broker on the transaction, you get paid once the deal closes. Your name and your fees are listed prominently on the HUD-1 and the title company wires your funds directly to your bank account.
For information about being a mortgage broker with us contact us at firstname.lastname@example.org