Something that most military home owners are not aware of is that brokers or mortgage companies that have access to wholesale rates sheets can get them a much lower rate than if they (Veteran) were to call Citimortgage themselves. This may not make a lot of sense on the surface but if you have ever shopped at Costco or Sam’s club then this example may help.
Why can Costco sell you a bottle of shampoo cheaper than if you were to go directly to lets say Johnson and Johnson’s website and buy it directly from the supplier? The answer is simple. Costco has negotiated huge discounts due to the volume of shampoo they buy, due to the fact that they (costco) spend money marketing and selling the shampoo and now this is money that Johnson and Johnson will not have to pay to move their product.
VA mortgage loans are very similar. Citibank of course has its own loan officers, branches and offices and is certainly willing to do their own loans through what is referred to as a “retail channel.” A retail location is like the Citi bank on the corner or in the shopping plaza. If you were to call Citi mortgage directly as a consumer you will work with their retail division and get great service and decent rates. However, if you call Flagship or any other broker that has access to Citimortgage’s wholesale rates, you will get a much lower rate.
I am not a veteran and do not have a VA loan of course. My entire mortgage profession has been spent working on VA loans and assisting military families with their home loans. The other day Citimortgage contacted me directly because I have a loan with them on a rental property of mine and they asked me if I wanted to refinance. I will keep this story short, but the rep at Wells when I showed him what wholesale rates I could get on my own, simply told me he could not compete and I should do it myself.
So for those of you with VA loans at Citi what does this mean to you? I am not trying to suggest that Citimortgage is ripping you off or that you should not refinance straight through the retail loan officer, but I do want to make you aware of your options and suggest seeing what Citi mortgage can do for you and then contacting Flagship Financial or another broker and see what they can do for you.
There has never been a better time than now to streamline your VA loan and take advantage of seriously low VA interest rates. Flagship Financial is dedicated to assisting you with any VA home loan questions you may have.