If you are looking to purchase a home or refinance your existing mortgage, you may want to look beyond simply walking into your bank. Many people secure a real estate loan through their bank because they don’t always realize that other options may exist.
I started out in this business 23 years ago working as a mortgage broker and never left. When I launched my business, I did feel that I may have had an easier start working for a retail bank (since people come in directly seeking services), but felt in the long run that I would serve my clients better as a broker. The main reason for this is being able to provide clients with options, along with the dedicated work ethic that goes with securing the best loan and option available.
Whether or not you choose to work with a mortgage broker or a retail loan officer, you should be in great hands if you choose someone that has integrity and experience. But outside of that, here are some reasons why you may want to consider working with a broker in your next real estate financing transaction:
Multiple lending options: Many retail banks specialize in “vanilla” loans, which is great because that would be their niche. If you don’t fit perfectly into that mold though, or even if there’s one little thing outside of their guidelines, they can issue a denial and you would not have any recourse. However, a mortgage broker can shop different lenders with different guidelines. A broker will also have the opportunity to help secure “out of the box” loans, also called “Non-QM” loans. For example:
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- “Debt Service Coverage Ratio” loans where no income is required to qualify on investment properties; only the anticipated rent on that home
- Asset depletion loans (using assets as qualifying income)
- Bank statements for qualifying
- 1099 only for qualifying
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Efficiency: As your mortgage broker, I am your one-stop contact from beginning to end and you will never find yourself having to re-upload documents or send them to multiple people/departments.
Negotiating interest rates: A mortgage broker works with multiple different lenders, so depending on your product and program, one individual lender may offer greater incentives than another, and this can also change daily.
Just some food for thought that you’re not married to your bank in this regard. Of course, if they offer you an excellent deal and interest rate incentives based on how much assets you have with them, that is quite appealing. But know that you do have options. Reach out with any questions or for me to run numbers on your scenario.
