Why "Mortgage Broker" Isn't a Dirty Phrase

Posted Nov 13, 2009 @ 2:25 pm, Viewed by 134 Visitors, Read 138 Times.

In today's real estate market you hear more and more everyday that you need to work with a direct lender, not a mortgage broker.  People say that brokers don't close on time, brokers take advantage of customers, and brokers are too expensive.  The truth is, none of those are true.  In today's market brokers have a huge advantage...we work with multiple lenders and have multiple options.  What if you're working with Bank of America direct lending, and they can't do your loan because your loan to value ratio is too high?  Do they just turn your loan down?  Working with a broker he can take your loan to someone else.  Maybe Bank of America can't do it, but someone else can.  Another example would be your debt ratio being too high for Wells Fargo direct lending...but again, maybe a broker has a lender who would love to take your loan when Wells Fargo is ready to deny it.

Another benefit to working with a broker is rates and closing cost.  As a broker, I can shop your loan to multiple lenders, and see who has the best rates.  Same thing goes for closing costs.  One of my lenders may be slightly cheaper than another, and in this market, who wouldn’t want to save a few hundred dollars in closing costs?  For instance, I’ve had to compete with direct lenders multiple times, and more often than not, I was able to quote better rates because I have more options at my disposal, or I was able to quote the same rate, but at a lower cost.  Just recently I was competing for an FHA Streamline loan with a direct lender.  While our rates were the same, he was charging one point, I was at 0 points.  It was a no brainer, the borrower took my loan, which had the same rate, but was 2,500 cheaper.

Brokers have a lot of benefits, we're able to get better rates, lower costs and have a lot more flexibility in our guidelines.  Next time you're shopping for a mortgage, make it a one stop shop by working with a local mortgage broker.

 

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1 Responses to “Why "Mortgage Broker" Isn't a Dirty Phrase”

 Amen Brother,

I laugh when I walk into a "Direct Lender" branch and see a bunch of young punks, most of whom are unlicensed, sub-prime or loan mod flunkies who got squeezed out of the business because of all the actual rules in the business now so they figure the next path of least resistance will be to go to a bank.  U don't need a license to work and the customers just walk in, like shootin' fish in a barrel!!

I guess all I can really say about that is: BEER, BAIT, AND AMMO SUMBITCHES!

Posted 5 days ago
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joshp975

joshp975 I've lived in the DC metro area my entire life; growing up in Montgomery County Maryland and attending the University of Maryland.  I now live in Arlington, Virginia.  Living all around the DC area has given me a great understanding of the real estate market.  After graduating from the University of Maryland, I worked as a loan officer in Gaithersburg for three years.  I then opened my own mortgage brokerage company, which I ran and operated successfully for several years before agreeing to a buyout by my partner.  Now, I have found a home at Choice Finance where I am able to grow professionally and better serve my clients. My experience has helped me refine my business techniques and find my niche in the FHA Jumbo Market.  It has also enabled many clients to take advantage of this program, which in turn lowered intrest rates and saved them money.  My combination of experience and know-how has lead me to become a great resource for my clients and enabled them to achieve their dream of homeownership. Read More

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