August 28th, 2017 4:36 PM by Gregg Mower
Are you planning on buying a home in the near future or currently looking to buy a house? If you are, you need to know to know how to save money. It is a little-known fact that here in California a Broker can sell Real Estate and arrange the financing of it. This may not sound that earth shattering on first look but if you find this article you found a company that has been doing this service for years. Some people in the industry believe that you can’t legally do both and those people would be wrong. There are very few of us that have the expertise to handle both functions and the licensing to do it. As a California Real Estate Broker you can act as an Agent representing buyers and sellers of real estate and represent them in the loan transaction if you hold the proper National Mortgage Licensing System (NMLS) license.
Why would this matter in a Real Estate transaction? It won’t matter if the company that holds these licensing does not utilize them to save their client’s money. Here at MAE Capital Real Estate and Loan we believe, first and foremost, that saving our customers money is one of the major reasons we even take on both functions. So how does that work you ask? Which is a great question. This works whether you are a seller or a property then a buyer of another one or if you are a first-time buyer. You see we will take the commission generated from the Real Estate commission and apply it towards you home loan to lower your interest rate thus lowering your monthly payment. We also will buy your home warranty on the purchase of your new home saving you thousands in potential work repairs.
Not only does this process work in saving you thousands of dollars you will only have to make one phone call or email to find out what is going on with your home and how the loan is doing. Traditionally, you will generally use a Realtor that does nothing but the Real Estate function and has no real ties with the loan company doing your home loan. This can cause communication problems and slow a transaction down trying to get a ahold your Loan Officer and or your Realtor. Under MAE Capital’s system you make one phone call and you can find out what is going on with the house and the loan and the sale if you are selling a home in addition. With all the functions under one roof the transactions will be far more efficient for all involved. If you were to ask an Agent their number one complaint with the business they would say the communication issues with Loan Officer and other Agents in the transaction. If they are all under the same roof everyone is held accountable to get the job done efficiently.
What makes this legal is that MAE Capital Mortgage, dba Mae Capital Real Estate and Loan is licensed under the California Bureau of Real Estate (BRE)not the Department of Business Oversight (formally the Department of Corporations, DBO). Most Mortgage Companies that you will talk to are licensed under the DBO which only allows Mortgage Companies to do loans, whereas, the BRE allows you to do many functions with your Broker License. So why are there only a few firms like MAE Capital that does both you ask? The answer is fairly simple, as a Loan Officer working under the DBO you can make up to 3% in commission per loan and under the BRE you can only make 3% as a company as a whole on the loan. That looks the same you say. It looks the same but is very different. You see a Mortgage company under the DBO allows a Loan Officer to make that kind of commission after the company has made their profit and if you are dealing with a branch of a larger company that branch will also have to make money to stay open so you have 3 to 4 layers of profit centers before it gets to you the consumer. With a Mortgage Broker we deal direct with the main company (No Branch) and no other loan officers so we cut out 2 layers of profit, making our interest rates points and fees far less than a large company. Then the large company cannot give you money towards the purchase of your home as that is not legal under the DBO but under the BRE you can give back to your customers towards costs and fees all day long saving clients thousands of dollars. This is why MAE Capital Real Estate and Loan came into existence to save our client money and make the process more efficient.
Here at MAE Capital Real Estate and Loan we call this “Service Bundling” designed to save our clients thousands of dollars and hours of time in their transactions. This is not a new concept it just has been refined by MAE Capital Real Estate and Loan. If you are looking Sell then Buy a new home in the Greater Sacramento area or Placer or El Dorado Counties we are here to help. For those professional that would like to explore the possibility of being more efficient you should contact us for a free overview. This is the best kept secret in the Real Estate Industry today and your Agent that doesn’t work for MAE Capital will try to change your mind as they work on commission. We are here to help those that have little knowledge of Real Estate and Lending. At MAE Capital we have over 50 years’ experience in both Real Estate and Home Loans and invite you to call us to today to learn more about how we can save you Time and Money. Call and talk with one of our licensed Agents today at 916-672-6130 we look forward to helping you with your Real Estate needs.