Why realtors prefer to work with mortgage brokers over banks
For most buyers, a new home is the single most expensive purchase they will ever make. Navigating the process can be time-consuming, frustrating, and at times confusing. While it is possible to sort through various loans and rates on your own, mortgage brokers can help you secure the best lender for your new home loan.
The decision to use a mortgage broker can be polarizing; while banks and other lending institutions often advise against them, most realtors prefer to work with mortgage brokers. If you’re preparing to apply for a mortgage, here’s what you need to know about working with a mortgage broker – before you head to the big bank or credit union.
What do mortgage brokers do?
A mortgage broker is a regulated, licensed finance professional who acts as the liaison or bridge between the mortgage lender and the borrower. Because they do not work for a single lender, they can help you find the best loan with the best interest rates and terms across a variety of lending institutions.
The mortgage broker’s expertise is knowing what kinds of issues, like closing on time, will come up on loans that might make it not work at one lender, but may make it work at another.”
Why realtors recommend mortgage brokers
While most potential buyers will only go through the mortgage process a handful of times, real estate agents work with both lenders and borrowers every day. Because of this, they are uniquely positioned to understand the ins and outs of the mortgage process – including the best professionals to work with.
Many realtors have close relationships with one or more mortgage broker. When they recommend a mortgage broker to potential buyers, it is not to receive kickbacks or other perks; agents recommend brokers that they trust, have worked with in the past, communicate well with, and above all else, know that they can help borrowers close on time.
Brokers are mortgage experts; they can help you take the guesswork out of finding the right loan, saving you time and money by helping identify the best rates. Mortgage brokers can also make the entire process less stressful. Because they serve as the liaison between the lender and your realtor, buyers can expect fewer phone calls or emails demanding documents.
Mortgage brokers can save potential buyers’ time – as well as significantly reduce stress during the home buying process. While their services aren’t free, the right broker can make the entire loan application and escrow process easier – and help you close on your dream home on time.
