hey folks this is Chris at Hauseit based in miami florida today we're going to
talk about an interesting topic that a lot of friends and clients of ours often
ask when do you use a mortgage broker versus
a mortgage banker or bank in florida or the miami market
well it's quite interesting because you'll if
you just go with whichever bank for example that you have an account with
maybe a big national one some of the big banks headquartered in
new york for example you might find
that they're a bit picky in terms of financing buildings here in florida
many of these large national lenders that are publicly traded
oftentimes have underwriting criteria that are very much
check the box type so for example they often have time they often have
trouble with buildings that have some sort of litigation in place
now if you know anything about florida buildings or condo buildings in
particular they
very often have some sort of litigation in place and i'm referring to more
specifically uh 558 chapter 558 lawsuits that you often see in newer buildings
near construction buildings uh even those that have been built uh you know
in the recent past four three four five years ago they'll often still have these
lawsuits on going against the developer for quote-unquote construction defects
but you know if you look around deeply you'll see that this is actually
quite common however it can be very problematic for
some of the more well-known bank names so
you know once that happens you know you you may have to
depending on how many lawsuits or what how serious the issues are you know the
nature of the defects being alleged
you may end up having to uh
to search much harder either for yourself or this is where a mortgage
broker might come in handy um you know if for some reason all of the big banks
uh have an issue with a particular building then it might make sense to go
with a mortgage broker who can scour all of these smaller some more alternative
or maybe hard money lenders who can give you a rate
now these non-conforming or hard money loans are obviously going to be a higher
rate than you would expect from a big bank directly so for example let's say
um you know in the recent past when mortgage rates 30-year mortgage rates
were in the high twos or mid-twos of like 2.625 let's say for example you go
with a non-traditional lender a small community bank perhaps who's
more flexible maybe they're underwriting on a portfolio basis then you might see
a rate that's closer to four percent sometimes higher but as you can see that
that still is a pretty big difference now with that said definitely check with
your buyer's agent and your listing agent check with other agents who have
sold properties in the building to see what they did for financing uh if it was
a finance transaction so for example i'll give you a perfect
uh recent example so we have a a client looking in the parizo complex
one one pre-zone in particular in edgewater miami a very hot
neighborhood this is a you know beautiful building top of the top of the
line amenities uh constructed in 2018-19 and it has a
predictably a chapter 558 lawsuit ongoing against the uh against the
developer for certain uh alleged uh construction defects you know the first
uh inclination of some of our clients is that hey you know i'll go to ex-name big
bank or chaser or any other big bank and such and and try to get a finance um but
they end up having issues the the bank does not approve the building at all or
sometimes they have to go through many many layers of uh approval to get the
building cleared so it really doesn't check the box and then in that case
they're stuck so they think either you know i have to purchase it on cash or
get a high interest rate loan well you know have hope go through the steps
you mentioned speak with your buyer's agent so if you were to ask us we would
say hey actually we've worked with different customers before seamless
things in the building where we know xnx bank you know has helped close in the
building and we can find that out for you or work in conjunction with your
mortgage banker to find out that information so for example we know that
there were a couple of deals done in 2021 uh that
were closed by wells fargo and you know this is of course after the
this is with them knowing about the uh the various the the litigation going on
the building against the developer and they were fine with it the best
indication of that is they obviously closed two deals at intervals throughout
this past year so that's a good good sign
so that's that's essentially it i mean the in summary
big banks are often going to be able to give you a better rate um they often
have you know huge balance sheets of course sometimes they'll hold certain
loans jump alones on a portfolio basis but they they generally have very very
competitive rates but you know so you can either go direct
with the mortgage banker there especially if you're doing a more
conventional deal or in the case that we just described you
find out that they have been able to finance in a building
but you know if not and you still really want to purchase in a building and you
need financing then it may be appropriate to shop around with a
mortgage broker and see if they can find a smaller alternative
non-traditional lender to help you get the deal done
so anyway we hope you found this video helpful my name is Chris at Hauseit we
recently opened here in miami florida we cover
miami-dade county broward county st lucie palm beach and
martin counties now in southeast florida we can help you save up to
six percent when you sell with our Assisted FSBO service and uh two percent
back or more essentially two-thirds of the buyer agent commission to you uh
when you purchase and keep in mind folks the
commissions payable to buyer agents in miami and southeast florida in general
are can be quite high for example the Missoni Baia building which is a fairly
close by in Edgewater offers 7% buyer agent commission so you would
get two thirds of that back anyway uh if you're interested in buying
or selling in either new york or florida drop us a line we'd love to hear from
you my name is Chris at Hauseit and i'll see you on the next one