WHY USE A MORTGAGE BROKER INSTEAD OF A BANK
Mortgage brokers are qualified professionals who get paid for matching lenders with borrowers. These brokers will manage the borrowers’ application by sending it from lender to lender until the culmination. A professional broker can usually handle different types of clients facing different credit issues. The broker procures a fee from the lender, and his fee is totally dependent on his negotiation with the lender.
Mortgage brokers are trained to obtain the best suitable rate for your situation by contacting all approved lenders. Since the broker works with various national moneylenders they are not compelled to recommend different programs to you. Brokers do the credit hunt for you. When you apply for a loan with a mortgage broker, you are successfully applying for a loan with every single lender the broker is approved with.
If you are looking for a new mortgage broker or perhaps you want to renew your existing one, there are several things you should be aware of when going to the banks. If you think you are smart enough to negotiate the best mortgage rates by messing around with different banks, you are just deceiving yourself. You will get a much-improved deal if you are working with somebody who does a ton of business directly with a mortgage company or particular bank. They have what is called “leverage”, which most people don’t have. Good mortgage brokers have extraordinary contacts with so many lending institutions.
Mortgage brokers make use of these contacts to find a product with the best rates for their client. But first, you may have to submit your financial information to your mortgage broker. There’s no big deal here because when you start negotiating mortgage rates with different banks, your information has to be supplied to them. The major ordeal is that a mortgage broker only runs your credit report once. You need to limit the number of times your credit report is accessed because your rating goes down each time you access it. When dealing multiple banks, they will all run your credit report hence impacting your credit value rating.
Consider these 5 solid reasons why a mortgage broker is a better option than a bank:
1. Wider Choice
This is perhaps the most compelling reason why using a mortgage broker outflank going with a bank. Hiring the services of a broker means you are basically accessing a whole host of banks as well as other lenders who amplify dozens of different products. On the other hand, your bank’s loan officer is limited by the range of products offered by his or her manager.
Odds are your bank’s loan officer doesn’t deal with mortgage loans only. Banks are tremendous enterprises and often switch their employees between various departments. This implies that they don’t always have as much experience added to their repertoire as mortgage brokers whose occupation is to help their customers as time goes on.
3. Industry know-how
Peradventure you have interest in venturing into property investing and need to consult a professional on the subject. For this situation, a mortgage broker is a much better option than the bank generally because the banks don’t train their staff in any specific region; all they do is to train their employees to serve on different area of specialization.
It isn’t something new that the red tape related with buying a home is annoying and tedious. But a reliable mortgage broker will take responsibility for this and he or she will keep you informed and ensure that you don’t miss detailing any important documents.
5. Personal Touch
When you go to a bank, chances are you are just a number that needs to be serviced. On the other hand, a mortgage broker treats you like a client with specific wants and needs whose request will be tailored to mirror every last one of them. Mortgage brokers act like entrepreneurs who are in it for a long term.
Your local broker is a convenient choice for you because he understands your local market and will be able to contact lenders across the country. Banks are usually attached to their own products and don’t always have a local presence.
These local market variations include heating and septic systems might be foreign to a national bank. Local terminology and classifications may also be lost on them.
Misconceptions can cause a slow loan process or even stop it in some cases. Local brokers will have a vast knowledge of the real estate market in their locality and can foresee and avoid such problems. Most lenders removed from the local market may address and disapprove loans that an intelligent lender wouldn’t. This is where the broker procures his expense; by often finding lenders for people with credit issues.
Certain properties with interesting or commercial attributes can in some cases prove difficult to fund through normal credit channels. An able broker can source specialist lenders non-standard real estate and also as non-standard buyers. They can also give you an exact examination of time allotment and result.