Why Use A Mortgage Broker?

Clarity, transparency, dependability, integrity.

Myths about independent mortgage brokers

There are many half-truths and uninformed opinions about working with independent mortgage brokers vs. getting a loan with a bank or other direct lender. Most of those myths are fueled by online lenders or promoters of retail institutions. 

  • Myth #1: Loan shopping hurts a credit score
  • Myth #2: A broker costs you more
  • Myth #3: Brokers lead you toward higher commissions
  • Myth #4: They do not have control of the underwriting process
  • Myth #5: You only need a mortgage broker if you have bad credit
  • Myth #6: Your bank will always give you better rates and programs

What to Expect from a Mortgage Broker

Wider access and greater value—Mortgage brokers are not beholden to any one lender. They have access to a wide range of lending institutions, including wholesalers, that offer competitive programs and buyer incentives for eligible clients. The financial benefits are for you, the borrower, not the broker. The broker’s benefit is that they can offer clients better deals, making them more valuable to borrowers.

Advocacy—The right mortgage broker can save you time and money and be your best advocate in buying a home or refinancing. While it’s true they don’t work for free, it’s often untrue that they cost you more than banks and many other retail lenders. In fact, broker fees are often offset by savings.

Integrity and industry knowledge— There are no kickbacks, and they don’t steer loans toward higher commissions to their client’s detriment. Mortgage brokers have a working knowledge of real estate law and get paid for their work as your advocate, loan facilitator, and personal project manager.

What mortgage brokers do for you in a nutshell...

ON THE FRONT END

  • Assure that homebuyers qualify for adequate financing, and can get the loan process started prior to offers being accepted, strengthening purchase offers

     

  • Save borrowers time and stress by researching the market and providing options to different lenders, loan types, and rates

     

  • Match the right loan program to borrowers’ financial profiles and goals

     

  • Connect borrowers with wholesale rates often lower than direct lender offers

     

  • Educate borrowers on what to do and what not to do when applying for a loan and lets them know their chances for approval based on their current situation

     

  • Help find the best options for borrowers that don’t meet conventional loan guidelines, such as self-employed borrowers, those with lower credit scores, or inconsistent incomes (actors, contract workers, etc.)

     

  • Keep their eye on rates and lender incentives, locking in rates when borrowers are matched with the right loan

ON THE BACK END

  • Coordinate paperwork and people such as processors, lenders, home-owners associations, and AMC reps (Appraisal Management Companies)

  • Help borrowers manage fees by getting lenders and relevant third parties to reduce or waive them, potentially saving hundreds or even thousands of dollars

  • Work closely with an in-house loan processor who communicates directly with lenders’ underwriters to get conditions cleared quickly

  • Keep underwriting on track, managing every detail to help streamline the mortgage process