Why deal with a mortgage broker? - There are many reasons why you should employ the services of a professional, licensed mortgage broker when you are ready for your next home loan. Probably the biggest reason is that they are on your side. If you go directly to a bank to get a home loan, the banks loan person has only the banks interest in mind, not yours.
Another reason is that mortgage brokers are contracted with banks and lenders at wholesale prices, which mean you can get a better rate. For example, if you had the option of buying a new BMW from either the BMW dealer for full price, or from BMWs wholesaler that gets the cars directly from the plant at a huge discount, which would you choose? Most people like to save money and when you work with a mortgage broker, you are likely to get a better rate.
Mortgage Brokers work to find the best loan program for your specific situation matching you with the loan program that fits best. Having access to hundreds even thousands of loan programs means that your broker will find the best program for your personal needs.
What's the difference between a mortgage broker and a lender?
A mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender "underwrites" the loan which means deciding whether or not you are an acceptable risk.
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Will I save money going directly to a mortgage lender?
Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders -- in a typical case, 25 to 30, sometimes more -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.
The best reason of all, the Mortgage Broker works for you. He doesn't work for the bank or any lender, but for you. His primary goal is to fit you into a product that is right for you, process the loan as quickly as possible, fund the loan in a timely manner. Another satified client and hopefully many referrals
Another reason to work with a Mortgage Broker is that you will have access to hundreds of loan programs instead of the small number offered by a specific lender. Mortgage Brokers also are more likely to help borrowers with poor credit, hard to prove income, or financing for unique situations.
By having the ablity to switch lenders at any time A mortgage broker can also deal with any problems that may arise much more effeciently then a bank.
Mortgage brokers have hundreds of loan products available to them, where as your local bank may have only a handful of loan programs. This means that credit, income, and other factors are not as important when it comes to getting you approved. The mortgage brokers job is to take a completed loan application and present it to various lenders, to find you the best possible rate and program that fits your needs.
Mortgage Brokers are compensated only if the mortgage loan closes. For this reason, Mortgage Brokers have an interest to see to it that the home buyers' purchase process proceed quickly and smoothly.