Many Real Estate companies have "in-house" mortgage companies where the Realtors working out of the home office will often "refer" business to the "in-house" lender.
This isn't a bad or good thing - in fact, depending on any number of factors, it could be very bad or very good.
One thing that is new however, is that the larger banks are starting to get into the game.
According to Inman News, Bank of America is starting to sign agreements with several Real Estate companies to provide lending services which can be done either through a partnership or a joint venture with Bank of America and the Real Estate company.
According to BofA's Todd McKenzie:
"Bank of America is willing to enter into similar relationships with any Realtor in the country. Real estate is a local business and a relationship business, and Bank of America wishes to have a relationship with any Realtor."Is it better to use the "in-house" lender of the Real Estate company you are working with to buy a home?
And, in my opinion - it largely depends on the loan officer. There are good loan officers who work at Bank of America and probably a few sub-par ones too.
The reason it depends on the loan officer is because the loan officer is the one who is going to be handling your file from start to finish - and be there to answer any questions that you may have. It will be the loan officer who has to figure out any "tricky issues" that arise - as well as work with you to solve them.
And trust me - in today's world there are very few (if any) files that don't have a "tricky issue" or two.
So when choosing a loan officer, just be sure that you are aware of the freedom of choice - you are free to choose to use an in-house lender or find a lender on your own.
But in the end, what you really want is to find a great loan officer, and great loan officers can work anywhere.