When to Use a Mortgage Broker vs a Mortgage Banker or Bank in Florida

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In this tutorial video, we'll go over when it makes sense in the tricky Florida real estate market to seek the services of a mortgage broker vs a mortgage banker or bank (i.e. a direct lender).

As you can imagine, often times the biggest banks with the biggest balance sheets that you might already have a banking relationship with will be able to offer you the most competitive rates. This is especially the case if you have the ability to get relationship pricing with them, i.e. depositing a certain amount before closing.

However, many of these big banks, often headquartered in NYC, are check-the-box type lenders who won't be used to more unconventional deals or markets like South Florida.

For example, in South Florida most condo buildings will have or had some sort of litigation in the building, it's very common to see. For example, most newer construction buildings will have a Chapter 558 lawsuit in progress or recently resolved. This is not uncommon to see as most HoAs will have some sort of complaints about alleged construction defects after the handover of the board from the developer to the HoA.

Often times these are very valid complaints, such as a defective parking garage that has walls that are too tight to safely park and drive through. Other times they can be more cosmetic.

Regardless, despite Chapter 558 lawsuits being pretty common in South Florida, some of these big NYC lenders will not be used to seeing lawsuits in buildings and will simply reject financing in any building that has a pending lawsuit. As a result, you may find it quite hard to get anywhere with your loan officer in New York.

In these situations, we recommend checking with your buyer's agent (hit us up!) or other agents who have recently sold in the building and seeing whether the buyer used financing, and if so with whom. For example, we can tell you that even though some big banks have issues financing at the One Paraiso building, Wells Fargo recently close a couple of deals within the last 12 months.

Failing that, it may make sense to check with a mortgage broker who can shop around for you at a variety of smaller direct lenders which you may have a lot of trouble ever finding. These smaller direct lenders might be able to do a portfolio deal, i.e. keep a loan on their balance sheet which means they'll have more leeway in terms of criteria.

Some of these smaller direct lenders that your mortgage broker might find might be classified as hard money lenders, and you

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Hauseit Group LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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