What is a mortgage broker?
A mortgage broker is a financial intermediary who focuses on simplifying the home loan process for borrowers by connecting a borrower to a lender that fits their terms. Every loan contends with different factors and attributes, and every lender weighs those facets differently.
How Mortgage brokers obtain better rates for clients than direct lenders.
While brokers work as the intermediary, a direct lender is a financial institution that has the ability to approve or disapprove individuals based on their qualifying factors, often making it difficult for people with less than perfect credit scores to qualify. Major lenders run their programs as an equation and if your situation does not fall within their one size fits all solution, they have no problem turning an application down due to the sheer number of applications they receive.
Brokers simplify the home loan process by understanding which lender suits their client’s situation the best. Brokers are able to fight for better rates as they have access to a variety of lenders and have a distinct advantage over direct lenders because of this access. A broker understands the expectations different lending company have concerning their guidelines for loan approvals. Through this diverse understanding, brokers are able to gather together different loan options from multiple lenders for the borrower to examine and find the most competitive rates and prices in the market.
How does a mortgage provide more flexibility within programs to help borrowers gain approval?
On top of providing their client with lower interest rates and lower fees through their network of lenders, brokers also save their clients TIME and MONEY. A broker acts as a knowledgeable consultant and problem solver spotting potential pitfalls before they arise and understands the different twists and turns that come with the mortgage territory. This ensures that the process is done right, saving you money along the way.
Borrowers only need to submit one application instead of completing multiple forms for each individual lender. Once the application is submitted the broker is able to gather accurate information that shows current rates, points at closing cost, and overall cost difference.
Mortgage brokers deliver much more personalized service!
This is where brokers have the most impact for their clients. Brokers offer much more guidance and communication throughout the entire loan process. Through this communication the broker is able to understand your long- and short-term goals, providing the most optimal information they can gather for the client. When using a direct lender or a major bank, often times the market research is left to the borrower. Brokers will provide you with:
- Local knowledge
- Local real estate trends
- Personalized service to find your best loan options
How can brokers assist you with credit issues?
This is often one of the biggest factors that people fail to think about when the idea of a mortgage brokers pops up. Brokers are excellent resources to get you back on the good credit train. Springs Home Mortgage, for example can give you a FREE personalized credit plan to show you step by step what to do to ensure you get a credit boost and on a path towards homeownership. Brokers are able to pinpoint what exactly needs to be amended to see the biggest credit jumps, as well as a time line for when you can be approved for a mortgage once the credit issues have been settled.
There are huge advantages to using an experienced and knowledgeable mortgage broker. They cut through the mess and position your application for the best possible chance at getting an approval. At Springs Home Mortgage we help people from all backgrounds, all credit scores and all income levels to get approved for the mortgage that fits them the best. We work diligently to ensure that. If you have any questions or concerns that you would like to discuss before getting into the home buying process, give us a call and let us help you put your worries aside!
Get in touch with us today! (719) 470-0178