When it is time to get a new mortgage, working with a reputable independent mortgage broker can save you valuable time and money over a traditional bank, credit union or large lender.
What is a mortgage broker?
A mortgage broker is essentially an intermediary between the borrower and the lender. Mortgage brokers, like the friendly staff at CloseYour Mortgage, are independent, licensed professionals. Since a broker is independent, he or she is not tied to working with a single lender but rather has relationships with many lenders and can quickly research dozens of different loan products to find the best deal. A broker represents you, the borrower, and is tasked with looking out for your best interests as opposed to the best interests of a particular lender.
Does working with a broker make my loan more expensive?
Probably not. Mortgage brokers have access to each lender’s wholesale pricing, which tends to be much lower that what borrowers would otherwise be able to obtain when working directly with retail lenders. Additionally, a mortgage broker can quickly shop multiple lenders to ensure the borrower gets the best value in terms of competitive interest rate, terms and origination costs. Often, a mortgage broker can save a borrower thousands of dollars in interest and closing costs versus a traditional bank or institutional lender.
A broker can save you time
Finding a home loan on your own involves shopping around for the best deal and submitting several applications with multiple lenders. A mortgage broker can cut days or even weeks off of this shopping time by taking a single application and quickly comparing your needs with the offerings of several lenders. Additionally, since every borrower is unique, mortgage brokers have expertise in anticipating the “gotchas” you might encounter at one lender and guide you to another lender that will give you a better chance of closing your loan on time.
While many borrowers reach out to services like LendingTree.com to “shop” multiple lenders, the reality is that these services merely act as a lead generation engine, inundating borrowers with multiple calls from multiple retail lenders, each looking out for their own interests, leaving the borrower with an even cloudier picture than before.
It’s all about relationships
One big advantage mortgage brokers have is their long-standing personal relationships with lenders and their underwriters. When you are nearing a closing deadline and an underwriting hiccup arises, it’s good to have someone in your corner that can work directly with the lender on your behalf and quickly resolve the issue so your loan can close on time.
How is a broker paid?
One could assume that having a licensed, experienced professional working on your behalf is probably going to cost a lot of money, when in reality the inverse is true. Brokers are typically paid a commission by the lender as compensation for bringing business to them, and even then, only after the loan has closed. The broker’s commission is not tied to a particular loan product, allowing the broker to find the best solution for each borrower rather than what makes the most profit for them.
Finding the right mortgage broker
There are several characteristics you should look for when finding a mortgage broker to work with. Make sure your broker has the right combination of personality, experience, professionalism and communication. There needs to be a two-way trust to ensure that your loan process is as simple as possible. You should feel comfortable disclosing personal information like salary and assets, and rest assured that your sensitive information is properly safeguarded.
Bottom line
Every borrower is unique and each has different financial goals and strategies – some have limited cash on hand to cover closing costs, while others are looking to aggressively lower their rate or reduce their loan term. Select a mortgage broker that understands your financial goals and can help you find the best (and hopefully the most affordable) solution for your needs, like the professionals at CloseYour Mortgage.
留言