What is a Mortgage Broker and why should I use one?

What is a Mortgage Broker and why should I use one?

Mortgage Brokers

Mortgage brokers are like a matchmaking service: They match you, the borrower, with a lender. They review your personal financial information, which includes your credit, your assets and your job history, and compare that with an array of lenders and try to match you with one or two who will give you the best rate and terms.

The advantage is choice because the broker will have lots of lenders to match you with - It is true that Mortgage Brokers typically have better rates and more programs than most banks and credit unions.  It is also true that Mortgage Brokers typically have more relaxed guidelines comparatively.  

The disadvantage is that once the Mortgage Broker selects the lender and the loan closes, the broker is no longer your point of contact.  The Lender of choice will now service your loan directly with you.  While the Mortgage Broker could still help you with any issue you might have, they will not be able to assist you with payments, as those will be made directly to the Lender you chose. 

Wholesale Mortgage Lending has been around for many, many decades.  In todays Market Mortgage Brokers are very heavily regulated by the Federal Government.  They must pass rigorous background and credit checks just to be licensed.  They are all bonded and insured.  

Mortgage Brokers are usually the ones with the most experience to offer you.  Give us a call, I bet you would be surprised.

 

Shaun Gober
Versatile Mortgage LLC
810 S Garfield Ste A
Traverse City, MI 
231-946-5988