An interesting research piece on mortgages in the US has noted that there is a “wide dispersion in the mortgage rates that households pay on identical loans, and [they] show that borrowers’ financial sophistication is an important determinant of the rates obtained.” Some individuals who take out a mortgage in exactly the same circumstances as other individuals end up having far better deals than others.
Researchers estimate that the gap between the 10th and 90th percentile of mortgage rates that borrowers with the same characteristics obtain for identical loans under identical conditions can vary by as much as $6,500 in upfront costs on the average loan. They found that borrowers who were the least financially savvy tended to overpay to a substantial degree relative to the rates which are available within the market.
The average level of overpayment decreases when the interest rate rises. This suggests that a higher level of borrowing cost encourages more negotiation and shopping around for better rates. Additionally, evidence that the academics have gathered suggests that financial knowledge and shopping around are both factors that affect the mortgage rate that borrowers receive.
Mortgage Originators
A mortgage originator is an individual or an institution that works alongside a borrower to complete the transaction of acquiring a home loan. The mortgage originator is the original mortgage lender and this can either be a mortgage broker or a mortgage banker. Mortgage originators are one of the parts of the primary mortgage market and they are required to work with loan processors and underwriters. This requirement extends from the date of the application of the mortgage so that they may gather all of the necessary documentation and so that they may guide the file which contains the mortgage all the way through the approval process to completion.
Marc Bui and his Achievement
Marc Bui has been in the top 1% of mortgage originators in the US since 2015. However, he started from very humble beginnings. He and his family moved to the US from Vietnam when he was only 4 years old with nothing to their names. They lived in a poor neighborhood and the entire family worked so that they could save up to buy a home in Garden Grove. This property is now a rental property for which the ADU is under construction.
Bui started working when he was only 11, in his parents’ garment manufacturing business. He would continue to work for his parents until the age of 17 when he began working for the National Gallup Poll, taking surveys over the phone. At the age of 18 he began working in the auto industry and soon after this at 19, he began working in the mortgage industry. This would be the industry where he found his calling and he was able to work his way up from telemarketer, to a loan officer and eventually to branch manager. He now leads a successful mortgage team – Thrive Lending Group. This team specializes in the field of mortgage origination.
Bui has been able to be so successful in what he does because he genuinely cares about his clients. He is deeply invested in their success and wishes to help those who need it to purchase their own home. This is particularly true of first-time home buyers. As was mentioned in the academic article above, financial savvy plays a big role in the rates that a mortgage borrower will eventually end up paying. As a result, Bui uses his savvy to help his clients achieve their dreams of home ownership at competitive rates.
Final Thoughts
Marc Bui has achieved the title of the top 1% of mortgage originators for the seventh consecutive year in 2022. He is highly skilled in his profession and he has helped hundreds of clients to access a home loan so that they may be able to own their own homes. This comes from a genuine desire to help others find their footing on the property ladder. Bui understands hard work and has been through a number of different professions before he found his passion in the mortgage industry. This is where he can leverage his own expertise to help clients secure the best possible mortgage so that they may purchase their own homes.
