I am often asked two questions when speaking with borrowers “why should I use your company for my new mortgage” and “Don’t you think my bank will do a better job than you?” Well let’s start with the second question first and simply put, No your bank will not do better than a Mortgage Broker. The reason to use any Mortgage Broker, simply put, is your mortgage options.
I would think that most people would agree that roughly 90% on the people that invest in the stock market make little to no money with their investments. The reason is most people really do not do their homework before they invest. Roughly only 10% of people will actually get professional advice before that invest. Yes there are always exceptions but for the bulk on investors we speak to our family and friends and not actual professionals. Just like stock market investing most people follow these same patterns when obtaining a new mortgage.
So let me ask you, do you think you would get the best mortgage deal from a mortgage company that only wants to sell their own product? It is no secret that a stock trader that wants to sell their own portfolio funds is because they make more money on these funds. Do you think your bank is not doing the same thing? It is my opinion, there is no difference as this business practice is exactly the same.
Mortgage Brokers use multiple investors which all look at your loan structure and supply roughly pricing. The Broker will use this information from their investors and discuss the options with you, the borrower, before an investor sees any of your personal information. Your best option is to use a broker that will look at your loan scenario as a direct lender and also a broker. The reason being is a direct lender option is not always your best option. This is more common than you would think.
I would recommend that you do a google search for a local mortgage broker and interview a view brokers until you find a broker you are comfortable with. For example, if I wanted a cash out mortgage in the city of Huntington Beach. I would do an internet search for“cash out mortgage Huntington beach” and there you will get a list of local mortgage brokers. I am confident that any of these people would be able to get you much better pricing than a bank. A five minute call could save you thousands. Keep in mind that brokers only get paid if your loan closes, unlike a bank Loan Officer, so they will move your file along quickly. Keep in mind; you should never pay any upfront fees when obtaining a new mortgage with a Bank or a Broker.