Golden State Lending

Local Home Loan Experience

By Maggie Caldwell

Owning a home is part of the American Dream — but how will you come to buy one? There are so many choices to make before finally moving to own that house of your dreams, and the final decision is just as important: choosing a mortgage lender.

There are two basic types of lenders: retail and wholesale. Retail lenders include banks and credit unions. Wholesale lenders include independent mortgage brokers like Chris Amsden of Golden State Lending. Chris has been in the mortgage business for 15 years. He started on the retail side, working in banks, and as he developed relationship with his clients he discovered he wanted to offer the best possible rate.

“Retail banks are like retail stores,” Chris explains. “Every day the Feds set the rate at which they will loan money to banks. The banks take that rate and add their profit in addition to some margin that covers rent and tellers and the other cost of running a business.” He also points out that banks often do one type of loan better than another. “As an independent broker, I’m licensed with several dozen different lenders and banks, and my goal is to find the best loan to fit your needs. Is this a vacation home? Investment property? FHA loan? Are you a veteran? I’m unbiased; I’ll take your loan to the bank that best suits your needs.”

Mortgage brokers earn their fees from the banks but have no allegiance to any one bank and no financial interest in selling one mortgage product over another. “Banks used to give incentives, but not any more,” Chris explains. “I’m not getting paid more by one bank than another.”

He explains how predatory lending has fallen away since 2012, when the banking industry set new regulations to guarantee more transparency. The CFPB (Consumer Finance Protection Bureau) now regulates the fees lenders pay to wholesale brokers, a system that was instituted to eliminate the sort of reckless lending that led to the 2008 mortgage crisis.

“Licensing and bond requirements went through the roof after the crash,” he explains. “Now we have to go through a background check and be fingerprinted as part of the licensing process. Anyone who didn’t want to jump through those hoops got away from this business.”

Chris has advice for those looking for a mortgage. “First, remember that you are the borrower, and it should be up to you on how you tailor your loan to your budget,” he answers. “Are you going to pay more points upfront for a lower payment, or does it make more sense for you to pay lower points for a higher payment. You have to suit your own budgetary needs, and that’s up to the borrower, not the bank.”

Secondly, he advises to get three quotes. “Do your shopping,” he says. “Know your rate monthly payments, and closing costs.” For borrowers seeking to refinance their home, he says, “Do a little more research and compare the overall loan amount.” Are lenders adding closing costs into the final loan amount?” Finally, know that there’s no crystal ball when it comes to predicting where mortgage interest rates will go. “If anyone says interest rates are heading in any direction,” he advises, “They’re trying either to close you or kick the can back down the road.”

Whether you are purchasing a new home or refinancing your existing loan, you can call Chris Amsden of Golden State Lending to find out type of loan he can find to match to your needs.

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Call him at 831-431-6192 or email him at Chris@gslhomeloans.com. His office is located in Soquel at 4601 West Walnut Ave #7. Website: www.gslhomeloans.com