Most people are familiar the use of travel agents when booking a flight. The agent can use any airline in booking a trip. The customer decides when he wishes to travel, and in what general price range he wishes to travel. All parts of the trip are arranged by the travel agent, and the cost of travel is indentical to booking the flight directly with the airline.
A Mortgage Broker functions in a similar capacity for the Real Estate Loan Industry. Most brokers have access to funds from a variety of sources including banks, insurance companies and private portfolios. The broker makes his selection based on the clients needs. Fees for the loan program are the same as if the client had contacted the actual lender directly.
This flexibility allows a broker to offer you a mortgage which fits your specific requirements. A broker is not limited to the small number of programs normally available from a specific lender. For example, banks seldom offer programs for people with less than perfect credit histories or a recent job change. In contrast, a mortgage broker has dozens of loan programs from which to choose.
A broker will also usually offer you better service and more competitive rates. The loan officer at the bank is typically an "order-taker", serving the walk-in business at the bank. In contrast, a broker wins his clients through advertising, both to the general public and to the real estate professionals. Competition plays a key roll in keeping the rates competitive and service outstanding.
your Mortgage Broker will actually save you precious time by shopping the lending market for you. With a Mortgage Broker, you make only one loan application. The loan request is then fully processed in the shortest time possible by a highly trained and motivated, professional staff. The Mortgage Broker does not earn a fee until the loan is closed.
A Mortgage Broker acts as your representative in opening the doors to a multitude of lenders. By assessing their current loan programs, interest rates, loan fees, underwriting guidelines, and credit requirements, the Mortgage Broker will recommend which lender and specific loan program suits your needs. You make the final decision!
Whether financing a home through a mortgage broker or directly with a lender, there is a loan fee to be paid. When working with a broker, that fee is shared between the lender and the broker. Ordinarily, the borrower will pay the same fees they would pay if they dealt directly with the lender. The borrower, however, benefits from the great flexibility of the broker by having the capability of changing lenders or loan programs without further cost.
Look for a mortgage broker who is a member of WAMBI, The Washington Association of Mortgage Brokers, Inc.
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