Many new homebuyers assume that they must work directly with a bank or lender. While working with a bank or other type of lender is an option, it's not always the best one. Working with an independent mortgage broker brings benefits to the table that banks and lenders can’t. Make sure you have all of the information you need before making your decision.
What is an Independent Mortgage Broker?
Similar to how knee surgeons are more specialized than general practitioners, mortgage brokers are more specialized in mortgages than bankers. They have direct communication with several wholesale lenders, to whom home buyers do not have direct access. Independent mortgage brokers work as an advocate on the borrower’s behalf and have access to a variety of wholesale lenders to find a mortgage that is custom-fit for you. Mortgage brokers do all of the work, researching all of the products on the market and finding the best ones to meet your needs. Mortgage brokers collect your mortgage application and pass it on to their own portfolio of lenders to get a quote.
Why Work With an Independent Mortgage Broker?
Brokers provide guidance and expertise throughout the mortgage process and make your life easier by managing the process for you. They also give you a variety of loan options, are licensed in the field, and offer a personalized experience that banks and other lenders can not.
1. Mortgage Brokers give you access to hundreds of different loan options.
Most mortgage brokers have experience and relationships with an array of lenders and banks. Not only can this introduce you to lenders that you might not know about, but it may also present you with a wider option of desirable mortgages to choose from. This can save you a ton of time, stress and money by putting qualified and trusted lenders right in front of you from the start.
2. Independent Mortgage Brokers are licensed professionals with unparalleled expertise.
Mortgage brokers bring a lot of value to the table. Being independent of a bank or lender allows the broker to “shop” rates for you to find the mortgage that best fits your needs, as brokers have networks consisting of several wholesale mortgage lenders. When you work without a mortgage broker on your side, you are limited to product offerings based only on one particular lender’s products and certifications.
3. Mortgage Brokers provide personal, one-on-one attention.
Unlike a bank, which works on specific hours and often requires an appointment, mortgage brokers are there when you need them. When you have a full-time job, kids, and the stress of applying for mortgage loans on your mind, it can make all the difference to have someone work around your schedule. Many mortgage brokers also have systems in place to keep you in the loop and informed throughout the application and loan process.
These are only three of the many benefits to using an independent mortgage broker over a bank or other type of lender. Mortgage brokers combine their experience with the ultimate customer service to ensure that you get the mortgage loan you want.