What is the benefit of using a mortgage broker instead of going direct to the lender?
I'm thinking of buying my first home and want to do what's best.
A broker will tell you that the benefit of using them is that they have access to a large number of lenders and as a result will be able to get you the best deal. In reality you are much better off to go to a direct lender. A direct lender will process, underwrite, and fund your loan themselves, a broker is not able to do this and depends upon others to get the work done. A direct lender will be able to offer you a quicker and more streamlined process. Typically you will get a much better loan offer from a direct lender than you would from a broker. | 09.18.13 @ 20:48
There are no benefits to using a broker. A Broker will tell you they will shop the best price. In reality everyone is close to the same. It comes down to service and a Broker is unable to provide the service of a Direct Lender because they are not in control of the process. As a Direct Lender we control the entire process from application to funding and in some cases we will even service your loan. | 09.27.13 @ 22:17
It's important to realize the distinction between a mortgage lender/bank and a mortgage broker. Brokers write loans, send to the actual lenders for approval (in most cases), and basically help expedite the loan process. Brokers are licensed on a state by state basis, so cannot write loans nationally. The loan closes in the lender's name, and may/may not get sold from there. A mortgage banker or loan officer typically works for a bank who does the loan approval, may service the loan, and will fund the loan with their money. Brokers (and some mortgage bankers) may have access to esoteric loan programs that banks typically don't, such as non-warrantable condos, etc. Loan officers who work at national depository banks (such as myself) can write loans nationally, rather than only in individual states. Bottom line, 95% of the time, the most popular loan programs are offered everywhere, and it's the responsiveness, expertise, and communication skills of the loan originator that make the most difference during buyers' loan process. | 10.27.15 @ 19:22
I'm a mortgage banker we process, underwrite and fund from my same office location. We offer big bank loans, niche specialty products and no overlays that a bank will have. As a mortgage banker I have thousands more products than a loan officer at Chase, Wells, B of A. I can close much faster even with TRID we can close quickly
This is not exact. It is true of a Mortgage Broker who might be a one man shop (few exist), I work for a nationwide company owned by a Fortune 100 and we do everything in house and fund with our own cash. Loans are sold off usually in 1-3 months after closing. Borrowers don't see the secondary sale until they get servicing notices. We offer better rates as I can shop a Fannie, Freddie, Credit Union and Portfolio lenders. Although a bank might be direct they are slow, and ship the file to a centralized center to wait in line | 10.27.15 @ 20:17