How Can Dream Home Funding Be So Much Lower Cost?
First, our owner has a BS in Industrial and Management Systems Engineering (aka Efficiency Expert) and spent the first part of his career in Operations Consulting. He was very good at it, but hated the travel. When he started Dream Home Funding, and every day since, he applied the same principles to our operations. The result is a company that produced a loan in 2016 at a cost of $271.84 per loan in an industry where the average cost the same year was over $7,000 per loan. That is what you are seeing when you get mortgage quotes and Dream Home Funding is charging nearly $7,000 less for the exact same rate on the exact same loan as our competitors. Nothing funny going on, we are just that much more efficient at what we do, and can charge you much less while making the same amount of profit everybody else does on your loan. And keep in mind the $7,000 is an average, some companies have even higher costs, and we beat them by an even larger margin. We've actually given people quotes in some cases that were $20K less for the same rate than the other lender they checked with. Good thing they shopped!!!
While our competitors have layers and layers of management, clerical staff, and other assorted staff who do nothing directly to get your loan closed; at Dream Home Funding the Owner is also the Mortgage Broker, Loan Officer, Processor, Receptionist, Janitor, Accountant, etc. While they spend mountains of money on advertising and marketing; Dream Home Funding is working almost entirely from referrals and repeat business. They have offices scattered all over the place; we have one office and a computer in every home (or pocket) that costs us nothing to operate.
While they aren't charging you for the credit report (and in some cases the appraisal) up front, they are charging you for your credit report and appraisal when you close as well as the appraisals and credit reports for the dozens of people who apply but never close through the inflated rate or discount points they charge to buy the rate back down to what we offer without those extra fees. So to avoid paying $50 up front, at the end you pay the $50 they tell you about, and $100's or even $1,000's more for all the people who didn't do anything that you'd only know about if you shopped for your mortgage, and most people don't.
Finally, when you go to most mortgage companies they are stuck offering you whatever pricing their employer is offering that day. If one of their departments is swamped, they may be increasing their pricing to reduce the amount of business coming in the door so they can get caught up. Or maybe they just decided to make more money on fewer loans. Whatever the reason, Dream Home Funding doesn't have that problem. When we price your loan we access a national database that shows us the pricing from dozens of wholesale lenders that offer the loan you are looking for, and we lock your loan with whichever one has the best price at that time. Doesn't matter to us which one we use, we get paid the same amount from all of them.
We know it may seem hard to believe, but we really are able to close loans at that much lower cost than virtually everybody else, and it is a violation of several federal and state laws to advertise rates/fees that cannot be obtained. You can check with our regulators and you will find not a single complaint alleging we bait and switch or anything else for that matter. Of course, the easiest way to find out is to tell us to lock what we quoted you, which we will happily do.