Why Using a Mortgage Broker for
your Home Loan is a Wise Choice
(What the banks don't want you to know)
Some people mistakenly believe that the "best" home loans can only be obtained
from a large, well-known bank, as if somehow a bank loan is the "best value",
"most real" or "safest" loan you can get. This simply isn't true.
A competent mortgage broker can provide low-interest rate, low-cost financing just as
well if not better than any large bank, and offer many other loan
options that any one particular bank may not provide to many different types of qualified
borrowers as well.
Banks have come lately to the Mortgage Marketplace
The insurgence of mainstream banks into the mortgage marketplace is a fairly recent
effort by banks to capitalize on the multi-billion dollar mortgage industry in the United
States, yet the overwhelming majority of U.S. homeowners continue to use mortgage brokers
to obtain their home loans. Why?
There are many clear and convincing reasons why using a competent, experienced, and
reputable mortgage broker makes sense:
Choices: A good broker works with enough lenders to offer a
wide variety of loan products to meet most needs, including loans to accommodate different
levels of credit-worthiness. This means that you don't have to spend all of your free time
shopping the market for the best loan -- a good broker does the shopping for you. Banks?
Well, they've got a limited assortment of loan programs for borrowers that can meet their
strict underwriting guidelines for credit, income and other factors, but if you don't qualify
there, you'll have to start the process all over again at a different bank.
Availability: If you're employed, your time to obtain or refinance
a home loan is probably limited to evenings and weekends -- exactly the same times a bank
isn't open. A good mortgage broker is like a good real estate agent: available when you
need him or her, even if it's "after hours".
Personalized Service: Most big banks have one or two loan officers
to handle a large volume of customers. Once your application is underway though, your transaction
is just one of thousands being handled by other people you will never meet, and who are
working on loans for hundreds of other clients at the same time. Wouldn't you feel better
knowing that a person, rather than an institution is managing your loan?
Speed: Imagine telling a clerk at the IRS office that you must
have your tax refund check within ten days. Can you imagine the response you'd get? Well,
try telling a loan officer at most major banks that your loan has to close by a certain
date. He or she can't offer you much assurance because he or she is not in control of your
loan—someone else is. Conversely, a good broker works with enough lenders to know
which of those lenders (including other associated parties such as appraisers and title
& escrow officers) can do the job fast. When getting your loan closed by a certain
date (within reason, of course) is critical, your best bet is to use an experienced mortgage
broker, not a bank.
No Application Fees: Many major banks charge an up-front, non-refundable
Application Fee. This fee can be anywhere from $100.00 to $500.00. A competent mortgage
broker doesn't have to charge you to tell you if you qualify for a home loan. If banks
are as good as they say, why charge you just to apply?