Washington Mutual Home Loan - Washington Mutual is the United Statess largest savings and loan. Despite its name, it is not a credit union, and ceased being a mutual company in 1983. Washington Mutual Offers wholesale mortgage rates to participating mortgage brokers around the country.

Wahington Mutual Home Loans can be obtained through a Mortgage Broker approved to do business with them. They offer a variety of products to meet the needs of many borrowers.

As markets for mortgages have become more competitive, Washington Mutual has increased their wholesale distribution through via the role of mortgage brokers.

Washington Mutual is often referred to by the Acronym "WaMu"

Washington Mutual offers many different mortgage programs. Aside from the standard fixed rate mortgage they also offer the Pay Option ARM, Interest only and ARM mortgages.

Obtaining a mortgage through a company such as Washington Mutual is very similar to obtaining a mortgage through any large mortgage lender. For a customer to go directly through a large lender, they will most likely receive the lender's retail rates, which are usually a bit higher than the lender's wholesale rates. By utilizing the services of a mortgage broker you will usually be able to obtain the big lender's wholesale rates and receive a very good deal. You have to keep in mind that along with big business comes big advertising costs and marketing dollars which equals higher fees and rates. However, when the big name lenders such as Washington Mutual use the services of mortgage brokers, their marketing efforts can be kept to a minimal and they can pass these savings onto the clients that the mortgage brokers originate the mortgage loans for, thus creating wholesale rates.

Bank loan officers versus brokers - When choosing a mortgage professional to work with, you need to decide if you are going to work with a loan officer from a bank or a broker. There are some major differences between the two. Here is some of what sets them apart.

Banks use retail rates, while brokers have access to whole sale rates. Brokers are also working with multiple lenders so they have several whole sale rates to choose from. This means they can find the lowest rate for your situation.

Local retail banks sell only their own loan products. If a bank does not offer a loan program suitable for a borrower in a particular situation, rather than going outside of the bank to find the perfect product, a bank loan officer would try to sell to the client the next best thing. A mortgage broker has much more loan programs to offer. In the same situation, a broker can usually go to other banks and structure a home financing plan short of tailored made for the borrower.

Bank loan officers typically offer programs for "A Credit" borrowers or those with the best credit. Mortgage Brokers have access to hundreds of different programs to fit every credit need.

When you work with a broker, you will find out how much the loan officer is being paid in Yield Spread Premium (YSP). This is something that the lender pays the broker, and the amount that is paid is dependent on your interest rate. A loan officer can raise your interest rate in order to be paid more in YSP from the lender. This allows them to charge you less in fees on the Good Faith Estimate (GFE), and in many cases can save you money.

Bank loan officers are also paid Yield Spread Premium, but they are not required to disclose how much they are making.

Loan officers who work for brokers are often paid as 'independent contractors'. As such, they usually are only paid commission and have the freedom to operate how they want (within reason). One advantage of this is that they may be willing to work in the evenings and on weekends if that is the only time that you are available to meet with them. Sometimes they are even willing to drive to your home to save you time and make the process that much easier for you. This isn't always the case, however, so don't expect it.

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