Finding a Lender

Finding a lender should be a very easy decision to make. You are looking for the best rate and terms. Whether it’s a large bank or small local or national the most important issue is your loan terms.

Mortgage Broker or Direct Lender

Advantages of a Mortgage Broker

There are many reasons that most loans today are originated by a mortgage broker. The number one reason is that the mortgage broker can shop around for the consumer to find them the best home loan with the best lender at that time. They are familiar with multiple lenders and can broker the consumer’s loan to whichever lender has the best interest rates and service at that time. They also know what lenders are stricter in certain areas than other lenders. If a consumer uses a good mortgage broker, this advantage can really benefit them in the long run.

Advantages of a Direct Lender

The major advantage of a direct lender is that the loan officer usually works alongside the underwriter much more closely than with a mortgage broker. The salesperson will often know their company’s home loan products much better than a mortgage broker since the salesperson only works with one Lender, their employer. This advantage can help a consumer know up front what issues there may be with obtaining a loan. However, with a good mortgage broker, they may know the issues just as well as a salesperson employed by the Lender.

Disadvantages of a Mortgage Broker

The greatest disadvantage of a mortgage broker is that if they are not good at their job, they may submit the loan to the wrong lender and waste you valuable time. If the consumer can find a good mortgage broker that knows many different home loan products with many different lenders, then the consumer will have an invaluable resource for getting their loan done right the first time.

Disadvantages of a Direct Lender

Direct Lenders only provide one set of home loan products. If a consumer doesn’t qualify for any of the Direct Lender’s home loan products, then the consumer may be forced to go find another Direct Lender or Mortgage Broker on their own. This also can waste valuable time. However, if the Direct Lender pre-approves you, then you have a very high likelihood that you will be able to close the loan.

Either option could be a good fit for your situation. If you know a good mortgage broker, then you may want to consider working with them to find the best home loan product for your situation. Make sure that the person you are working with to originate your loan knows what they are talking about. Shopping around and talking to a few different Mortgage Brokers and Direct Lenders may give you a better idea of who to work with through the process.

These are just a few of the questions you should ask yourself before you decide to buy. If you have looked at all the options and made the choice to buy Reef Point Realty can assist you and represent you during the home buying process. Let us serve and support you as you begin one of the biggest financial moves of your life. Just as our name indicates, a“Reef Point” is a piece of small stuff used to reduce the area of a ship’s sail during strong winds, making for smoother sailing.  Our team Reef Point Realty was formed ensure your transition of buying, selling, or remodeling a home is a smooth one.

No tags