Recently, I was asked by a potential new client to explain the advantages of using a mortgage broker versus a bank. This is a great question! I want to share this distinction with you as well.
1) A broker works with many lenders. When a client goes to a bank, they are limited to the loan programs being offered by that specific bank. They are also limited by that bank’s policies, procedures, pricing, underwriting, and turnaround time. A broker will match up the client with the best lender to match their particular circumstances. We choose the appropriate lender based on those circumstances, also taking into consideration pricing and service levels. Some lenders are better for FHA/VA, others for Fannie Mae products, others for Freddie Mac products, and so on.
2) We do the loan shopping for the client. Can you imagine how time-consuming it would be for a client to go to several banks in order to make the comparisons we do every day on the above criteria?
Stay tuned for part two of this article in which I will share reasons 3 and 4.
What do you think is another advantage of using a mortgage broker? Share your thoughts below.