| The burning question is - Should it be a mortgage | | | | another if you have trouble qualifying for some specific |
| broker or lender for one of your biggest investments? | | | | loan products. Remember a broker has access to a |
| Let me show you the pros and cons of both. | | | | larger array of mortgage products from different |
| With thousands of mortgage loan products available | | | | lenders. This skill can save you thousands of dollars. |
| now, it's a relief to know that you only have to choose | | | | Picture this. If a borrower can shop for loans to easily |
| between two options - a mortgage broker or a lender. | | | | determine the best package based on his |
| But how does the two differ in services? | | | | circumstances and special needs, then it wouldn't |
| Lenders loan their own funds, and capable of giving | | | | matter if he dealt with a mortgage broker or a lender. |
| the final decision on your application. Banks, private | | | | The thing is, the home loan market is so complicated, |
| lenders, mortgage bankers constitute this category. | | | | that the type of loan provider so matters to a |
| Your loan is processed in-house and chosen from its | | | | borrower. |
| limited loan programs. | | | | To illustrate further, a large percentage of borrowers |
| On the other hand, mortgage brokers are independent | | | | have poor credit. Many lenders won't offer loans to |
| financial experts who perform the intermediary | | | | them. These also include borrowers who can't |
| function between the borrower and the lender, and | | | | document their income or assets, those who want a |
| can work with many lenders at one time. Like lenders, | | | | low-payment mortgage or no down payment loans, or |
| they also specialize in residential and commercial loan | | | | overseas borrowers. As the list of difficult qualifiers |
| origination. There are wholesale lenders who work only | | | | rise, the mortgage brokers' inventory of loan products |
| with mortgage brokers which gives another edge to | | | | to accommodate these types of borrowers continue |
| the broker in terms of access to more loan products | | | | to increase too. Because brokers find the right loans |
| for the customer. | | | | for the right borrowers. |
| Mortgage brokers can shop the huge mortgage | | | | Of course you can always elect to shop for lenders |
| market to arrange financing that wouldn't otherwise be | | | | yourself, but if you're not up for the challenge, go |
| available to you from other lenders. This is essential to | | | | delegate the responsibility to a mortgage broker. But |
| find the best interest rate and terms possible. Truth is, | | | | make sure it's a broker that you trust, doesn't charge |
| mortgage brokers work on commission known as a | | | | excessive fees, and who value your repeat business |
| borrower's fee called points for their brokering services | | | | and referrals. |
| in addition to the fees charged by the lender. One point | | | | So, should you get a mortgage broker or a lender? |
| is equal to one percent of the loan amount. | | | | Brokers are the experts at shopping the loan market. |
| So why pay a mortgage broker fee if I can go directly | | | | Although lenders do an outstanding job, getting a loan |
| to a lender? | | | | from the best lender might not necessarily mean the |
| Good question. Your biggest gain is a mortgage broker | | | | best loan for you. |
| can quickly move your loan from one lender to | | | | |