Why use a Mortgage Broker?

Over the past 10-15 years the lending industry has really evolved. Prior to the popularity of brokers, if you needed mortgage financing you simply walked down to the local bank, which was owned and operated by someone in the community, and applied for financing. My how times have changed, why?

First, most of the "home town" banks have been bought out or merged with large corporate banks like Bank of America, Regions Bank, or Commerce Bank. With this happening on every street corner the focus became less on the "client" and more on growth, deposits and profits.

Second, the evolution of the "mortgage broker". These individuals, if you find the right one, offer much more competitive products than your typical regulated commercial bank. What's the difference? Mortgage brokers typically have lending avenues with several banks at least 5 and more often than not upwards of 20. What does this mean for the client. More choices, more companies bidding for their business and an individual working on commission. Brokers do not get paid by the lending institution unless they get your loan closed!

Banks usually have access to only their products. On rare occassions they will use other institutions, however this is not common. Also, bank loan officers typically have a base salary to compensate their loan closed revenue. This means that they have a constant stream of income coming to them regardless of the status of your loan.

Mortgage brokers fill a much needed void in the lending industry! Much like anything else in life, do business with someone you trust and has testimonials or references. Finding the right mortgage broker can save you a lot of time and money.

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