Top Ten reasons to use a mortgage broker
In today’s conservative world of lending, you must be competitive to survive. But with so many banks out there offering similar mortgage loan products, how can you get to shop all of them for the best deal possible? Enter the professional mortgage broker. Today’s broker is a whole different breed than years ago. NMLS national licensing is the gold standard. Continuing education requirements are constant. Barriers to enter the field are steep. Mortgage brokers today are subject to increasingly stringent rules, and even stricter penalties. Many have left the business, and those who are here today are most likely here to stay. That said, there are many reasons that you should use a mortgage broker.
Here are our top ten reasons.
· Selection: A mortgage broker has access to all kinds of different home loan programs (usually hundreds) through a variety of different lending sources including major (and smaller) banks, credit unions, private investors, and hard money lenders depending upon your credit profile and loan type that many banks don’t offer.
· Accessibility: A mortgage broker is also able to move your file to another lender should a better deal appear. Or if there is a problem with your file in underwriting your mortgage broker can switch lenders within minutes and ensure you meet your close date. Local banks cannot do this.
· Cost: Mortgage brokers have access to wholesale rates; where as your local bank only has access to the rates that they offer. This can save you money on your monthly payment, and potentially $100,000 or more over the life of your loan. Especially if you have a unique situation that your bank will not be able to handle that one wholesale lender might see differently than another, which is often the case.
· Professionalism: A mortgage broker will discuss and explain the programs that are available to you for your particular situation. Most brokers have a “real world” understanding of the borrowers financial challenge and can offer expert advice on how to accomplish a particular financial mortgage related goal.
· Convenience: Mortgage brokers can float a rate as long as you like, and generally lock it within minutes per your request. They will also inform you in writing that your loan interest rate is locked and wont change.
· Service: Most brokers go out of their way to explain to clients all the documents involved in plain English so you understand what you are signing. We explain all the costs involved in closing the loan. We give you a timeline of the loan process. We provide you with a good faith estimate. We also coordinate the final closing of your loan.
· Local market knowledge: Though some operate nationally, most mortgage brokers are also familiar with the areas in which they operate. Using someone local has big advantages as they have a good idea of what your appraisal might be which reputable service providers to use.
· Reliability: Most mortgage brokerages are small businesses that work very hard to please their customers. Unlike many large banks, where you are simply a number, professional brokers understand their value and work diligently to please their clients. With so much mortgage information online, it's hard to know who to choose. If something goes wrong along the way with your loan, it is also easier to deal with if you have a broker you can meet with face to face rather than a website or 800 numbers.
So there they are,
Ten very solid reasons why you should use a mortgage broker to obtain your next mortgage loan.
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