Reasons mortgage brokers are better!

Most local bank loan officers are paid a salary and have a 9-5 attitude. Calling them on the weekends or in the evening is not typically an option. A mortgage broker is typically working on commission. Thus, they are far more inclined to work hard at closing your loan. If your loan does not close, they do not get paid.

Mortgage brokers have the ability to lend through hundreds of different banks and wholesale mortgage lenders. Your local bank only has their in house mortgage programs availible that are generally for borrowers with perfect credit. If you do not fit into one of the banks mortgage programs you need to find a mortgage broker.

Because most banks only offer one set of mortgage lending guidelines, most banks are not good at "Creative Financing". Creative Financing can be anything from finding different ways to structure your home loans, to providing alternative income documentation loans, to finding ways to get a loan done with a very low credit score. Creative financing means many different things to many different people, but the bottom line is that mortgage brokers are the best at creative financing and structuring loans to get you the best deal possible. The main way this is possible is because mortgage brokers have tons of different lenders available at their disposal from all across the country that they can shop your loan with. They can find lenders that will lend on unique situations, that will use common sense, and that offer different programs. Thus, mortgage brokers can be extremely beneficial for most borrowers.

Mortgage Brokers may typically have higher closing costs than the bank, but they will have lower interest rates. If you're looking for a fixed rate and plan to pay off your mortgage without ever refinancing, it is more beneficial to go with the higher closing costs and lower interest rate.

One of the best reasons why mortgage brokers are better for borrowers is because they are required to disclose all of their fees to the borrower, so the chances of running into "too good to be true" hidden fees such as those typically charged by local banks and so called "direct" lenders are pretty slim.

Another reason mortgage brokers are better than lenders is that brokers offer loan programs from many different lenders. This means that brokers are more likely to find a loan that will meet the specialized needs of borrowers than a single lender.

» DISCLAIMER: The information contained in this article on 'Reasons mortgage brokers are better!' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.