Finding a good lender is deciding to choose from a maze of mortgage brokers and direct lenders. I myself learned it the long and hard way. Let me help you scrutinize how a mortgage broker or direct lender can give you what you're really looking for.
Mortgage brokers are independent financial specialists in residential and commercial loan origination. After getting your application, they forward the fund servicing of the loans to wholesale lenders (lenders who work only with mortgage brokers), and can work with many other lenders at one time.
Direct lenders are lending from their own funds, and thus capable of making the final decision on your application. Mortgage brokers perform the intermediary functions and represent many lenders and loan programs from which to choose.
The professional expertise of a mortgage broker, coupled with direct access to hundreds of loan products from lenders and wholesale lending sources, is able to provide the most efficient way to obtain competitive pricing for a customer’s specific financial circumstances, and can save you money.
How? Because a direct lender can only offer you from among its limited in-house loan programs. They do an outstanding job, but your choices are confined to what they can call the best deal from a lender, but NOT the best loan for you.
This is where mortgage brokers come to the rescue. Even if they charge a little bit more, a mortgage broker can save you thousands of dollars with the appropriate loan according to your needs.
My personal take is I’d rather pay the broker’s commission if the end result would still give me more money in my pocket.
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