The Old Way of Mortgage vs. The New Way of Mortgage

So, what exactly is it that makes New Way Mortgage outshine our competition? We’re glad you asked, and today, we’re breaking it down for you. For comparison’s sake, we’ll call our competition Old Way Mortgage as we move through these scenarios that unfortunately are becoming all too common.

OLD WAY MORTGAGE: Get Cleared to close in 60 days or . . . more.

We hear it every day—broken promises from Old Way Mortgage. Your home purchase or refinance hanging out to dry, not a priority because of the overwhelming number of applications mortgage lenders are receiving and their antiquated systems that cannot support that influx in volume. Unfortunately, you are just another number at Old Way Mortgage.

The once-promised 30-day close has now been pushed back to 60 days or longer, and Old Way Mortgage continues to ask for more of the same documentation that you’ve already sent in—twice. It seems like the requests never stop coming, and all you want to do is feel confident that your home purchase or refinance is going to close on time, or at all.

NEW WAY MORTGAGE: Get Cleared to Close in 15 days or Less

With New Way Mortgage, we have access to a variety of different lenders to shop your loan for the best placement. If a lender can’t meet our expectations for closing, it’s on to the next. When we say a loan will be cleared to close in 15 days, we mean it.

This means that you won’t be waiting around wondering the status of the loan and if it’s going to close on time. The truth is, we’ll probably be ready before the rest of the transaction is complete! And you won’t be bombarded with additional requests for documents for weeks on end, which creates a better buying experience YOU. This is the new way.

OLD WAY MORTGAGE: Fees, More Fees, and Higher Interest Rates?

With Old Way Mortgage, you’re likely getting quoted something like 3.5% for a 30-year-fixed loan right now. With everything that’s happening in the market, including many lenders having a backlog of loans to work out, they’re offering higher interest rates to 1) ease demand so they can catch up on the backlog of loans and 2) to pad for non-sellable loans.

Not to mention that the loan officer gets paid a commission to sell you a loan through their company, and big companies have a much higher operating cost than the small-but-mighty mortgage broker. And like we said, the loan officer gets paid a COMMISSION to SELL, NOT SERVICE.

NEW WAY MORTGAGE: We Pass Along Cost Savings with Lower Interest Rates

At New Way Mortgage, we aren’t processing thousands of loans at once, so we don’t need to pad anything. And we don’t pay a commission on your loan, so we don’t have to charge higher rates and fees to compensate for our pay. How does 2.5%/2.765% APR for a 30-year-fixed loan sound with lower fees? We’re guessing that it sounds a whole lot better.

At New Way Mortgage, we’re passionate about the entire process of lending, not just the sale. We’re using the latest technology and have a robust support team so we can operate at a much lower cost that YOU, the consumer, doesn’t pay for. This allows us to pass along lower rates and savings to our customers.

OLD WAY MORTGAGE: 25 Voicemails and Still Haven’t Heard from Anyone

When you call Old Way Mortgage, the phone rings ten thousand times before it finally goes to voicemail. Or maybe you get 40 minutes of dentist-office hold music before you finally get to speak to someone. That’s because the loan officer for Old Way Mortgage is the butcher, the baker, and the candlestick maker, wearing all the hats with little to no support. And to be honest, they don’t really know what’s going on with your loan because their team is in the middle of processing ten thousand loans and doesn’t know if they’re coming or going.

Your loan officer at Old Way Mortgage is focused on trying to lock in as much volume as they possible can during these windows of historically low interest rates. Let’s be honest, once you’re in the system, you’re no longer a priority. It’s frustrating, to say the least.

NEW WAY MORTGAGE: Ring, Ring: “New Way Mortgage, this is Jennifer, how can I help you.”

In times like these, where there is uncertainty and volatility in the market, you need a mortgage team by your side going the extra mile, not hiding behind their voicemail. At New Way Mortgage, YOU are our TOP priority, and we want you to know that you can ask questions about your loan or get a status update any time you want with a call, text or email. Even better, we’re all licensed loan officers that know what’s happening with your loan, so whoever you get on the phone can give you a real-time status update.

OLD WAY MORTGAGE: “I just found out that we are no longer offering that loan program.”

At Old Way Mortgage, you may notice that all the loan programs you were interested in are no longer available. Here’s the harsh realty facing many mortgage lenders these days: they have a limited number of funding sources, and when those funding sources pull their financing, they are left with nothing. If you’ve gotten that call in the past 90 days, we feel for you and would love to help. With the volatility in the market, many lenders experiencing funding issues that will likely continue on throughout the year.

NEW WAY MORTGAGE: We’re Here to Pick Up the Pieces

At New Way Mortgage, we’re a mortgage broker, which means that we’re the connector between you, the borrower, and several mortgage lenders, not just one. This allows for flexibility in times of volatility. Just because one lender has pulled a specialty loan program or financing option doesn’t mean there isn’t another one out there ready to step in. With a mortgage broker, you have that option. With a mortgage lender, you don’t. We’ll shop around until we find the loan that fits your needs.

In a nutshell, that’s the breakdown of the changes that are happening in the mortgage industry. There’s the old, high-cost, out-to-date way of operating as a massive mortgage lender. And there’s the new model that allows mortgage brokers like New Way Mortgage to operate with lower margins while passing along big savings and better service to our customers.

So, are you ready to step into 2020 and see what it’s like to get a loan from New Way Mortgage? If so, please reach out to us at hello@newwaymortgage.com or by calling or texting us at (916) 465-6NEW. You can also visit our website at newwaymortgage.com to learn more or get started with the application process online!­

Disclaimer: 2.5% Rate described is a 30-year fixed with an APR of 2.765% Primary or Secondary Residence Only, 1 Unit property, CA, purchase or rate-refinance