Why Buyers Should Work with a Mortgage Broker
Most people think mortgage bankers and mortgage brokers are the same — with the similarity in name, that misconception is no surprise. Why use a mortgage brokers instead of a bank? There are major advantages to partnering with a mortgage broker that a banker simply can’t offer.
Independent mortgage brokers are able to shop the wholesale market to find loan options that meet your buyer’s unique financial needs and desires. With the access to more options with better pricing, your buyer could have a lower monthly payment or better loan terms.
Mortgage bankers are bound by the building they work in and are only able to offer the loan products their bank carries. Oftentimes, this comes with a higher price tag for your buyer.
Would your buyer benefit from a wider selection of home loan options? Of course they would!
Follow this checklist to see why mortgage brokers are better than banks for your buyers.
- Your mortgage broker can pull your client’s credit report, and help them discover ways to improve their score. A higher score may qualify them for a lower mortgage rate.
- After working with multiple lenders to find loan options, your mortgage broker will review them with your buyer. With your broker’s help, they’re able to proceed with full confidence in their financial future.
- Most mortgage brokers can collect documents electronically, which means less hassle and a quicker process for everyone involved. Required documents typically include pay stubs, W-2s, tax returns, two months of bank statements, proof of homeowners and title insurance, and statement of assets and debts. As a reminder, many lenders can now electronically pull their income and asset statements, so ask your mortgage broker what is needed.
- You and your client can relax, knowing you’re in good hands with your mortgage broker who works on your behalf.
- If your client is considering refinancing, your mortgage broker can help them review their current mortgage. A clearer understanding of their outstanding balance, years remaining, and current interest rate can help them make the best choice for their future.
- Your mortgage broker can help identify your client’s purpose for refinancing. Is it to lower your monthly payment? Pay off your home faster? Pay off credit card or other debt? Fund a home improvement? Know your goals so you can choose the right loan.
- Your mortgage broker can help your client consider the refinancing cost. Discussing closing costs and fees with transparency can help them determine whether refinancing is a smart move.
So, are mortgage brokers a better partner for growing your business and serving your buyers? Absolutely! Now that you see why a mortgage broker is better for your buyer than a bank, find a local mortgage broker and get started.