Mortgage brokers have many advantages they offer their clients which borrowers do not receive when working with a traditional bank. Although there are many more, two of the greatest benefits of working with a broker are: 1.) they have access to lower interest rates and fees, and 2.) they are far more transparent than a traditional bank. In addition, if the mortgage broker is a high volume lender, they often receive special pricing and service beyond what you would expect when working with a larger bank, and they have access to more products to meet the needs of their clients.
When you work with a mortgage broker, you can rest assured that they are not charging you more than they would another borrower with your same loan parameters. That’s because most mortgage brokers are now paid a flat fee based on the loan amount for originating mortgage loans. Further, they have access to more banks and lenders, and are able to shop for the lowest price and the lender that best suits you. Therefore, you can trust a broker when you are being quoted an interest rate and closing costs, and be assured that what you are being offered is a great deal. Banks, on the other hand, have the freedom to charge closing fees and offer interest rates that will generate more income from your loan than they would charge another borrower. Not only can this damage the trust in a relationship, it also can create fear in borrowers that they are not getting the best deal available for their situation.
We believe that transparency builds trust. As a broker, we strive for total and complete transparency. It is important to us that our clients fully understand their mortgage and that they are not paying more for their loan than they should. While banks and large mortgage companies have the ability to charge more for their services without disclosing the total income they are earning for doing your loan (often referred to as “Back End Fees”), brokers disclose every penny they earn. Most importantly, they do not charge their borrowers anything; they are solely paid by the lender that will service your loan. This is why there are not any “Origination Fees” or “Processing Fees” charged by a broker that you will typically see when working with a bank. Further, mortgage brokers are not allowed to earn any money above their typical flat fee for doing the loan. If there is an additional credit back for the interest rate chosen, that credit is automatically given back to the borrower. (That is how we offer no-cost loans to our customers.)
Overall, working with a mortgage broker is a great strategy. As always, I only suggest working with competent and structured broker who has a team of qualified professionals ensuring that your loan is handled efficiently and with excellent customer care. Further, look for designations such as Certified mortgage Advisor, or brokers who have stood the market changes and have been in business a long time. Longevity and designations show they are committed to their profession and providing the greatest advise in this ever-changing mortgage environment.
To experience how transparent we are, visit our website at www.dev.citycreekmortgage.com and choose the “Find Your Best Rate” tab. After answering a few simple questions, you will get a complete list of interest rates and closing fees associated with those rates (if any) for all suggested available loan options. If you are considering a refinance, look for interest rates that show total closing fees as $0 or a negative number. Those are no-cost loan options. If your current rate is higher than the offered no-cost rate, hit “Apply Now” or call my office to take the next step.