It’s a crowded market for mortgage loan origination companies - a few you’ve likely heard of: Wells Fargo, Bank of America, Quicken, JPMorgan Chase, Loan Depot or Prospect Financial Group here in San Diego. The list goes on. To an outsider unacquainted with the technical particulars of the financial industry, you’re probably lost. Sure, you might check Google / Yelp reviews for star ratings, but how much can customer experiences really explain? For example, hearing that Bank of America loan officers were more (or less) friendly than those at Wells Fargo does not explain where these companies differ in their behind-the-scenes cost underwriting. Before deciding who is going to help finance your home, it is best to understand how mortgage companies really differ from each other.
Right now, we are all “fish in the same pond” for mortgage loans - through Fannie Mae, Freddie Mac, FHA and VA - government-sponsored enterprises that buy and guarantee loans on the secondary market. The non-industry translation: they pool loans for lenders, making more loans available to borrowers of all income brackets. The result is that loan market prices are set. They may shift depending on global bond market anxieties caused by trade wars or nuclear threats, but the prices are defined.
So why do mortgage loan origination companies quote different prices? In short, it comes down to those behind-the-scenes differences: Companies like Loan Depot and Wells Fargo are lenders, in addition to brokers. They put up the cash to pay for your loan, while also working with customers to customize, plan and sign-off on the final mortgage. For an analogy, think of them as a real estate agent making commission for a home sale, but they also own the home.
How does Prospect Financial Group differ? We are a wholesale mortgage broker. We set up your loan, but we don’t underwrite the finances. The result? We cannot adjust our closing costs. We disclose it all, and the percentage we make remains contstant for every loan. For Bank of America, closing cost profit percentages can go up or down throughout the year depending on client volume. When they receive too many requests for quotes than they can accommodate with their staff loan officers, they simply raise their closing costs.
With Prospect, the rates are the rates, and it’s the reason we’re able to offer the low prices we do.
By controlling volume with their margins, lender / brokers have carved out a place in the market as truly massive financial institutions; they’ll set up your loan, and even give you a better rate if your checking account is big enough. With Prospect, you can rest assured that you’re getting the lowest price - price percentages set forth by the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act.
To see where rates sit in today’s market, head over to our website to receive a quote. You don’t need to speak to a loan officer to get rates, and they can be viewed multiple times a day.
Prospect Financial Group
948 Garnet Avenue
San Diego, CA 92109
NMLS: 349089 | BRE: 01837707
Jason Vondrak has been in the mortgage industry since 2004 and co-founded the mortgage brokerage Prospect Financial Group in 2006 in San Diego, California. Today he serves as President and CEO of Prospect Financial Group and the president and founder of Prospect Property Group, a real estate development company, established in 2012.
"I've had the privilege to serve in an industry that exists to ensure homeownership remains among the top priorities of government and citizens alike. Over the years, it has been a pleasure working alongside homeowners, real estate professionals, and business associates combining efforts and teaming up to help homeowners realize the dream of home ownership."
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 365482
948 Garnet Ave
San Diego, California 92109
Phone: (858) 605-0952