Top 10 Reasons to Use a Mortgage Broker vs. a Bank Lender
Depending on the type of home loan you are looking for, you could save yourself thousands of dollars by shopping various lenders for your home mortgage needs. Therefore it is very important that you know the difference between a mortgage broker and a bank lender. The main differences among the two are that mortgage broker’s act as a association between the home buyer and the bank lender. Where as banks derive the loan from their employer.
Below are the Top 10 reasons why you should use a mortgage broker instead of a bank:
- First of all Mortgage brokers specialize in home loans and are totally commission based, so it is in their best interest to get you the best rate possible along with other benefits, or they don’t get paid.
- They have an exceptionally large network of lenders that they work with to get you the most complimentary mortgage rates and terms compared with others. Put it this way, the more lenders you have competing for your home loan, the more you save your money.
- Mortgage brokers are able to work one-on-one with each individual client, evaluate their specific needs and find a lender that suits them personally. Next, the broker submits the request to one or more lenders and when the request is accepted the broker works closely with the lender until the home loan closes.
- They can often times find a lender who accepts home loans that the bank foregoes. Mortgage brokers are also able to discuss a lower interest rate from lenders in trade for bringing in business.
- All-in-all mortgage brokers save you the groundwork of finding the best mortgage rate and terms for your specific needs.
- Banks on the other hand deal with all types of loans and may not have the specialization in home loans that a mortgage broker has.
- Bank loan officers process mortgage loans originated by only their employer.
- Loan officers at a bank are often limited to certain home loan products, guiding principles and criteria that they must follow. This is why they take more time to disburse any lone than us.
- Regardless if you choose to have your home loan with that particular loan officer or not, they are still getting paid a salary. Keeping this in mind they may not be looking out for the best interest of you.
- Banks do not have a network of lenders that they work with. Every home loan application the bank receives is from one lending institution.
If you are prepared to finally buy your dream home, look to a mortgage consultant to help you comparison shop. I suggest you go online and search for mortgage brokers in your local area. There are several sites that actually do the shopping for you which will end up saving you a lot of time and phone calls. They can also help you find the lowest rates and fees for your home mortgage needs. The right home loan is just one step out of the home buying process that you will not have to be concerned about. Visit us at www.lonestarfinancing.com today for more information.