Why do lenders use mortgage brokers?The bottom line is that lenders use mortgage brokers because they save the lenders time and money. Mortgage broker does all the legwork of finding customers, pre-qualifying them, and compiling and submitting their loan package. As a result, lenders are able to offer discounted pricing to brokers. Mortgage brokers offer the lenders an alternative to branch offices. Since personal contact with the customer is usually required, broker's office serves as a lender's branch office. This saves the lender tremendous amounts of time and money. Mortgage brokers act as a matching service - they match the right clients with the right lenders. Broker knows what each lender is looking for and submits loans that a particular lender is likely to approve. This saves the lender a lot of time and expense since they approve a higher percentage of loans. Mortgage brokers generate about 50% of all loans. Lenders have established wholesale divisions and have account representatives on staff just to service their mortgage brokers. There is a lot of competition amongst wholesale lenders to get broker-generated business. Broker's relationship with these lenders gives him a competitive edge in getting you a competitive loan! Mortgage brokers are responsible for all the sales and marketing required to find clients. Lenders in effect have a large sales force with little overhead cost. |
We Say "YES" When Others Say "No" 857-205-1068 Centurion Funding Corp. of America 162 East Main St. Avon, MA 02322 |
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