September 18th, 2015 2:20 PM by Leonard Silvestri
Finding a way to finance your mortgage is bunked with confusing forms and strict policies. Both bankers and mortgage brokers have taken hard hits since the 2008 financial crisis which has left consumers wondering whom to approach. Bankers or Mortgage Brokers? Both comes with pro and cons and determining their weight in funding power is a delicate balance of rate versus approval.
Mortgage Brokers are an intermediary entity who brings together and arranges transactions between a mortgage borrower and a mortgage lender. However, they do not use their own funds to emanate the mortgage. They are licensed professionals with access to hundreds of loan options for home buyers - sometimes exclusively. They support home buyers and mortgage borrowers by leveraging relationships to secure the best loan option available. Brokers have been known to help buyers save thousands of dollars on attaining their mortgage.
People consult Mortgage Brokers for their expertise. While loaners provide other lending options such as auto, boat and personal loans, Mortgage Brokers focus solely on mortgages. Brokers are the wheelers and dealers of mortgages with the ability to negotiate and find only the most competitive offerings.
The cost of hiring a Mortgage Broker is a downfall for many first-time buyers. And it's true - mortgage brokers do require a fee for their services. Closing costs are pricey as is and adding a fee for the Mortgage Broker will only pay more stress in the matter. However, most borrowers say a one-time fee is worth it to cut on mortgage payments down the road.
When looking for a mortgage, many people turn to their banks. It's a simple decision really. Most people trust their banks and already have an established relationship. They know exactly what to expect in terms of service and deals. This is a big pro for bankers as their ease of service and lack of a third party dealer make them very appealing.
However, a big con of Mortgage Bankers is that your bank already knows a whole lot of information about you. They know your credit score, if you're reliable with payments, how much money is in your account, income, spending, habits, etc. While this makes qualifying easier, it means there's not much wiggle room for negotiation.
Which ever you decide, Mortgage Broker or Mortgage Banker, it's worth doing the extra bit of research to discover which option makes more sense for your situation. If you do decide upon a Mortgage Broker and are looking for a Florida Mortgage, call the Boca Raton Mortgage Brokers at Alternative Mortgage Group for the best rates at 561-395-4264.