Applying for a mortgage can be frustrating to say the least. Frankly, you are just a number to the lender, one of many more or less begging for a loan. Alas, there is one way to improve your stature.
Good mortgage brokers fill an important role in the real estate industry. They give borrowers leverage when dealing with banks that otherwise do not pay much attention. Mortgage brokers place roughly half of the total dollar volume of all real estate transactions in the country. This makes lenders very attentive and responsive to mortgage brokers. As a single borrower, a bank is not going to give you much attention.
If you go through mortgage brokers, you are going to get a ton of attention because the bank wants that broker to keep sending business. If brokers feel like they are getting the run around from the bank or less than stellar customer service, you can be sure they will move on. Why? Because most mortgage brokers get there business from referrals from happy clients. If you are unhappy, the broker is just as unhappy.
Mortgage brokers are also very helpful when it comes to the actual decision on applying. A good broker is going to sit down and look at your finances and credit before going through the application process. They are then going to identify the various options they think you can pursue to get financed. This is where they provide serious value and why you should use one.
Unlike bank representatives, mortgage brokers are not tied to any one bank. They canvas the full field of offers being made by lenders to find the best rates and deals for the time you are applying. Banks change their loan rates daily, so you need the broker if you hope to find the best offer.
Mortgage brokers are also a tremendous resource if you have less than perfect credit. They know which banks will care and which will not. If you are in the middle of escrow on a purchase, you do not want to find out the bank just rejected your application.
Best of all, mortgage brokers are paid by the lender. The lenders take the view that mortgage brokers will bring in such a large volume of business that it is worth doing business with them. How about that? Free mortgage services!
Raynor James is with the site - FSBO America - see our new section on Mortgage Loans .