As confidence in the housing market begins to grow and more people entertain the idea of purchasing property, potential buyers will seek assistance with the mortgage process. While there are many options available, including going through the bank directly, Don Frommeyer, the President of the National Association of Mortgage Brokers (NAMB) gives five reasons why mortgage brokers are the best bet for securing a loan:
Industry Relationships: In reality, there are a limited number of banks you can contact so it is best to go through a reputable mortgage broker who has connections with many different lenders. Effective brokers get special rates from lenders due to the volume of business they generate, resulting in a lower rate than you could secure on your own. They may also have special access to programs at wholesale pricing that individual borrowers would not receive.
Saves Time: Since mortgage brokers have regular interactions with a wide variety of industry contacts, this process saves time from having to research and call multiple lenders. A mortgage broker can also help with navigating the terms of each lender, steering clients away from those who have confusing payment terms buried in their contracts.
Transparent Fees: The fees and terms of a contract with a mortgage broker must be completely transparent, with full disclosure of the rate at which the broker will receive. “This is a huge discrepancy between brokers and the banks,” adds Frommeyer. “While a broker will provide a full itinerary of the fees, banks are not required to provide that same information.”
A Greater Selection: Generally mortgage brokers have more options than mortgage bankers as there are more lenders at their disposal. Reputable mortgage brokers are well-versed in shopping around to get the best interest rate and terms for which their client qualifies, due to having a variety of options to choose from.
Additional Services Available: Many mortgage brokers will go above and beyond to get the deal done and do more than simply find the mortgage loan. “Brokers look to build a relationship with their clients and offer assistance where it is needed,” says Frommeyer. “Whether it is helping with basic understanding of credit or acting as a helping hand throughout the entire mortgage process, brokers tend to be more helpful than the banks.”