The mortgage brokerage industry has grown by leaps and bounds over the past decade. The only reason any industry can grow that quickly is because it’s adding value to consumers. 20 years ago mortgage brokers were relegated to helping consumers that couldn’t find a mortgage for themselves, but mortgage brokers began finding a new niche; finding better mortgages for all homeowners. Here are the top 3 reasons a mortgage broker can find you a better mortgage.
Less Headaches – Specialized Knowledge
Mortgage brokers typically do one thing, day in and day out, and that’s to secure mortgage financing for borrowers. Although to some this may sound simplistic, the reality is that navigating the complexities of lender policies, unique property characteristics and the art of negotiation is a complex task. Most mortgage borrowers only negotiate a mortgage transaction once every 3 years. This is not enough exposure to gain an expertise. Similarly the generalists that one encounters in a branch environment may not provide specific mortgage expertise due to the fact that their duties are stretched over several product lines.
Better Terms – More Choice
Mortgage brokers are independent and can work with a variety of lenders. This independence allows them to shop the market to match you with a lender that best meets your needs. These needs may include pre-payment privileges, extended rate hold periods for long closings, or accommodating underwriting guidelines for rental properties or self-employed borrowers. More choice leads to better solutions to meet your needs rather than the need to settle for what’s offered.
Better Mortgage Rates
One of the most important factors in determining the best mortgage solution is a good mortgage rate. Due to the fact that mortgage brokers deliver large volumes of mortgages to the lenders, they get better mortgage interest rates. Lender representatives want to make their clients happy by delivering a good mortgage rate however they are also representing their company and need to deliver profits. Mortgage brokers aren’t compensated to sell a higher rate and will find the lender with the best mortgage rate. Like lenders, mortgage brokers want to keep their clients happy but without the conflict of trying to up-sell a higher rate.