Why "Mortgage Broker" Isn't a Dirty Phrase
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.
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 no... Read More
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There are currently 1 Response to this blog entry.
bnicolas
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!