Why should I use a mortgage broker? Won't that cost me more money?Mortgage brokers represent you, the borrower, in obtaining financing from a variety of lending sources. If mortgage brokers are middlemen between you and the lender, how can they save you money? Don't you have to pay extra for using a mortgage broker? The bottom-line answer is NO. Independent surveys have shown that mortgage brokers do NOT cost you more than direct lenders. In most cases, they are able save you money. Mortgage brokers increase competition in the market place, resulting in lower rates for everyone. Since mortgage brokers obtain their funds from a variety of sources, they allow you access to a large number of lenders. When you apply for a loan with a broker, you are in effect applying for loans with all the lenders the broker represents. Some of the advantages to using the services of a mortgage broker over going directly to an institutional lender are: Broker can provide financing which is customized to your needs. A direct lender has a limited number of their own loan programs to offer and their loan agent can only sell you their loan programs. In contrast, broker represents several lenders and hundreds of different loan programs that can be custom tailored to your specific borrowing needs and not be limited to the constraints of one particular lender. Broker acts as advocate and intermediary for you. He will often step in to negotiate terms and conditions which are more favorable to you than the terms you would normally receive by working directly with the lender. Broker does a part of work for the lender and therefore, the lender gives him a "discounted" wholesale rate on the loan. Broker marks the rate up to a retail price which is often the same price the lenders would charge you to go to them directly. The result is a better loan program for you without an additional cost. Additionally, there are numerous competitive lenders that only accept loans from mortgage brokers. You can only gain access to these competitive lenders and their programs by using a mortgage broker. These "wholesale only" lenders frequently price their loans more aggressively in your favor than institutional retail lenders. Application via broker is more flexible. On the occasion where a loan is declined by the intended first lender of choice, or when that lender imposes unacceptable conditions, broker can re-package the file and easily submit the loan to another lender within a day or two. This is because broker processes a package that is generic to all lenders with whom he works. If you went directly to a lender and subsequently wanted or needed to switch lenders, you would need to start all over with your new lender and you would lose 2-3 weeks in processing time. |
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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