Choice of Mortgage Porgrams
Mortgage brokers have regular contact with a wide variety of lenders, some of whom you may not even know about (some lenders work exclusively with mortgage brokers). The alternative to working with a broker is to call up dozens of lenders and compare their mortgage terms and rates on your own. A broker saves you the time and headache of having to do that. A broker also can steer you away from certain lenders with onerous payment terms buried in their mortgage contracts.
You May Save Some Fees
There are several different types of fees that can be involved in taking on a new mortgage or working with a new lender, including origination fees, application fees, and appraisal fees. In some cases, mortgage brokers may be able to get lenders to waive some or all of these fees which can save you hundreds to thousands of dollars.
Competitive Interest Rates
Brokers help keep loan rates low due to their minimal overhead and setup costs, and from the consumer perspective, with rare exception, the broker does not get paid unless and until the loan closes.
Knowledge
The biggest advantage of mortgage brokers is that they know the business. A person might need to obtain a mortgage only once or twice in her life. Typically, this is all a broker does. Brokers are aware of the entire market. They follow the trends, know what mortgage products are available and are aware of which institutions might be offering special discounts. They may know of exclusive deals that are not offered on the open market. They are able to identify the most appropriate lender for the specific circumstances of a borrower.
Convenience
Another significant benefit of the broker is that they handle the paperwork and the interaction with the institutions. This saving of time, work and stress is a big factor for many individuals who retain a mortgage broker. Because brokers develop professional and personal relationships with representatives of lenders, they can frequently reduce the processing time of an application.
Brokers’ Interests Align With Your Own
Because brokers, unlike bank employees, are compensated only after closing of the loan, they will make sure customer loan pre-approval is thorough and that customers are fully prepared and informed throughout the entire mortgage process, until the loan closes. Customer satisfaction and convenience also increases the chances for return business, new referrals and reinforces stronger relationships with the Realtors, thus the broker has the ultimate incentive to provide the best possible customer service.
Mortgage brokers are also more regulated and monitored than bank employees and often a higher standard of knowledge and experience is required to maintain mortgage broker license.