How do you find homes that are not currently on the market?
This is one of our very unique services and there are a variety of ways to do this. Homes that used to be on the market can be very good candidates. Homes that are currently tenant occupied can be good candidates as well. Contacting an owner directly, telling them that we have a qualified buyer who is prepared to buy a home just like theirs, can create an opportunity. Also, other Realtors sometimes have “pocket listings” – sellers who are motivated but for one reason or another have chosen not to list their homes. More simply, this process requires effort and action, something not usually found in the traditional Realtor community.
How is your process different than from a normal Realtor or loan broker?
The vast majority of Realtors do not also broker loans. The vast majority of loan brokers do not also function as Realtors. This is a hybrid bundled service that does both!
Is it legal to be a Realtor and loan broker?
Yes it is, as long as all fees and costs are disclosed in writing.
Are there upfront costs?
When and how much do you get paid?
Fees are paid out of escrow when the transaction closes. For the service of brokering a loan we charge 1/2% of the loan, regardless of the size or type of loan. The typical loan brokerage fee ranges from 1.0 to 2.5% of the loan amount.
For representing you as your agent when a home is listed for sale, the listing agent usually has an agreement in place with the seller to compensate the buyer’s representative.
If we find a home for you that was off-market, the seller will pay a 3.5% fee for handling the entire transaction.
Won’t I get a better deal working directly with the listing agent?
Not a chance. First of all, the listing agent was hired by and represents the seller – they won’t be negotiating on your behalf but will be trying to be impartial between you and the seller. That won’t help you get the best possible price. Furthermore, you’ll have to go out and find a loan — that loan officer will get paid a fee as well.
What areas do you work?
Orange, South and West Los Angeles, and North San Diego counties.
Do you work with 1st time homebuyers?
Home buyers at all levels can become Wise Home Buyers!
Do you have low or no-down payment loans?
Absolutely. There are many 3 to 5% down payment loans available in the marketplace today. There has never been a better time to finance a house with limited resources. Furthermore, the low amount of fees that we receive (and a potential credit from the seller) require even less cash than a typical transaction. VA-eligible buyers can buy a home with $0 in the transaction!
Won’t I get a better rate going directly to a mortgage banker?
Almost certainly not. A mortgage bank prices their own loans, according to their appetite for loan volume, profit, and risk. On any day, a particular mortgage banker may or may not be competitive. On the other hand, a mortgage broker can shop between dozens of wholesale lenders who are activetly courting their business. For a borrower to find a better rate than a broker, they would have to find the needle in a haystack – and that just doesn’t easily happen.