September 25, 2017
Orion is often compared to, and shopped against, on-line lenders. With the many real estate websites and apps available today, it’s easy to think our broker’s clients can click around on the web to find all the information they need. But in many cases, as our brokers know, the available online data is misleading, outdated, or plain wrong.
Orion has underwritten and helped fund thousands of loans for millennials and other first-time homebuyers, and our AEs see this often: A young couple finds the “latest” mortgage rate on a popular real estate website and then asks our broker, “I see a rate of 3.5% - can you get that for me?”
Our experiences explain to clients that the rates found on websites doesn’t always take into account the type of loan and its terms as well as the buyer’s credit score, down payment, and debt-to-income ratio. In fact, our brokers usually explain these terms to their borrowers. Realtors often face a similar challenge when a homeowner goes online and sees what their home is “worth,” but real estate websites don’t always take into account factors like the condition of the house, or a lard rendering factory planned for construction up the street.
The internet is a great resource, but it’s not perfect, and filled with flawed information. That’s why, to determine the actual rate available, borrowers need to work with experienced brokers. Orion’s brokers have the tools to determine the exact rate for an individual buyer. They know that rates change all the time – even several times in the same day – so borrowers can’t always trust numbers they see online.
Our brokers work with their clients on information sometimes not disclosed by on-line lenders: Is there an origination fee associated with the loan? What is the APR, or annual percentage rate? What are the closing costs? Every homebuyer should take the extra time to work one-on-one with a broker to understand their qualifications and individual rate, as in the mortgage world, the old-school approach is the smart way to go.