22 Oct Going “Broker” Saves Money in the End
It may seem difficult to decide where to place your trust with all the mounting changes we have seen in the mortgageindustry in recent years. However, many of the most beneficial changes have been instituted by independent mortgagebrokers and are designed to benefit the customer. mortgage brokers can provide many advantages to their clients, which borrowers do not receive when working with a traditional bank. A broker has access to lower interest rates and fees as well as many more products and services to meet the individual needs of their clients. Many high volume brokers also receive special pricing and service beyond what you would expect when working with a larger bank. Most importantly, brokers offer a heightened level of transparency when it comes to any costs associated with a loan. Combine all these benefits with an elevated standard of customer service and there is no doubt that a mortgageexperience with a broker is the best deal in town.
One of the most important aspects of mortgage lending for borrowers is fees and costs associated with a home loan. When you work with a mortgage broker, you can rest assured that you are not being charged more than any other borrower with your same loan parameters. That’s because, with increased industry regulation, most mortgage brokers are now paid a flat fee based on the loan amount for originating mortgage loans. Banks, on the other hand, have the freedom to charge closing fees and offer interest rates that will generate additional income for them, and those amounts can vary between borrowers. Not only can this damage the trust in a relationship, it also creates fear that you are not being offered the best deal in exchange for the bank increasing their profits. Whereas, you can trust a broker when you receive a quote on interest rate and closing costs, because their services are held to a much higher regulatory standard in the mortgage industry. In addition, brokers are not limited by one bank’s products and fees, but rather they have access to multiple banks and lenders and are able to shop around for the lowest price and the lender that best suits your needs.
At City Creek Mortgage, we firmly believe that transparency builds trust. The very foundation of our business model is the trusting and lasting relationship we have with our clients. As a broker, we strive for total and complete transparency. It is important to us that our clients fully understand their loan terms and that costs and benefit have been fully calculated and measured to produce the best option for them. While banks and larger mortgage companies have the ability to charge more for their services without disclosing the total income they are earning (often referred to as “Back End Fees”), brokers disclose every penny they earn and there are no hidden costs. Most importantly, brokers do not charge their borrowers anything directly; they are compensated solely by the lender that will service your loan. This is why you will not see “Origination Fees” or “Processing Fees” charged by a broker that you typically see when working with a bank.
Mortgage brokers are not permitted to earn any money beyond their flat fee paid by the lender on each loan. If there is any additional credit back associated with the interest rate chosen, that credit is automatically applied back to the borrower at closing. This is how City Creek is able to offer a no-cost loan to our clients, by applying an interest rate credit to cover any standard third party fees (title costs, appraisal, underwriting, etc.) charged on a loan.
For these and many other reasons, working with an independent broker can offer you many advantages over a loan with a traditional bank. As always, I only recommend you choose a trusted and experienced mortgage broker with a team of qualified professionals, thus ensuring that your loan is handled with efficiency and superior customer care. To make certain you have chosen one of these top organizations look for designations such as Certified mortgageAdvisor that indicate they have completed additional training and education. Also, look for brokerages that have withstood the market and industry volatility and have been in business a long time. Longevity and professional designations show they are committed to their profession and are providing sound and trusted advice in this ever-changing mortgage environment.
To experience the level of trust and experience we provide at City Creek, visit our website at www.dev.citycreekmortgage.com and price your own loan with our “Find Your Best Rate” option. After answering a few simple questions, you will get a complete list of interest rate possibilities and closing fees associated with those rates (if any) for all suggested available loan options. If you are considering a refinance, we suggest selecting an interest rate that reflects total closing fees as $0 or a negative number. These are our no-cost loan options. You can easily apply online or give us a call to take a personal application over the phone. We are always here to provide the best possible service to our clients. Give us the opportunity to show you how great working with a trusted mortgagebroker can be.