Why choose a mortgage Broker? -
Today 75% of all mortgage transactions are now being performed by mortgage brokers acting to match both lender and borrower. Mortgage professionals have expertise in finding programs ideally suited for each borrowers needs.
A mortgae broker can handle problems with your loan file much more effective then a local bank. A mortage broker can switch your loan to another lender within minutes if a problem should arise. A local bank usually has one program and if something happens the loan can be denied.
They serve as a matchmaker between the home buyer and the lender. The broker draws from a pool of lenders to find the right match. A mortgage broker shops around for your mortgage where as they would go to 30+ lenders and the banks, loan institutions, trust companies and private lenders who end up competing with each other for your mortgage.
The theory is that because a mortgage broker has access to multiple lenders, they have the ability to shop for the best rates for you. Most lenders are competitive, and they have to be because that is there bread and butter they make the money on the interest you pay.
Studies show over 85% of Americans use mortgage brokers for financing. Brokers provide consumers with choice, convenience, and experience. The consumer recieves an expert mentor through the complex lending process. The broker offers the consumer extensive choices and access to affordable home loans while balancing the consumer's financial interest and goals.
Some of the answers why over 85% of all loans today in the United States are originated through mortgage brokers are listed below:
A mortgage broker's overhead is ussually lower than a bank therefore, you may recieve lower rates or lower fees than a bank. Mortgage brokers do not ussually have high priced presidents and attorneys that banks have thus they do not require the profit margin in a loan that a bank requires.
There are many different mortgage programs out there for consumer to choose from. A broker deals with numerous Lenders (banks,mortgage bankers,etc.). Because a mortgage broker has access to these programs and bank ussually has access to what their bank offers you have many more options with mortgage broker.
A mortgage broker is specialist. Mortgage brokers spend all their time concentrating on mortgage loans. A loan officer at a bank may work on mortgage loans, car loans, consumer loans, checking accounts, etc. The average mortgage broker is ussually more educated with respect to loans that the average bank loan offcers.
The loan officer at a mortgage broker are ussually the best in their field. Loan officer through mortgage brokers work on commision and are not paid unless the customer gets their loan. Loan officer at banks are salaried and ussually salaried at low amount. The good loan officers at banks many times leaves to go to work for a mortgage broker.
Any bank at any one time may have good rates. The is called supply and demand. When a bank needs loans to fund their portfolio, they improve their pricing (lower rates). When they have had their fills, they decrease their pricing (raise rate). A mortgage broker has entered into contract with numerous lenders, therefore when a certain lender raises their rates a mortgage broker has another lender to choose from. In addition, sometimes the lenders with the best rates are out of state, a mortgage broker has access to these lenders where bank ussually do not.
