Consider Working with a Mortgage Broker Over Banks and Traditional Lenders If you’re in the market to buy a home in Seattle, Bellevue, Portland, Eugene, Denver, or Boise, odds are you’ll need some sort of financial tool to help you finance such a massive purchase. The purchase of real estate is typically the largest investment that consumers ever make, and given the high prices of homes these days, it can be tough to come up all the funds up front in an all-cash transaction. Mortgages are handy financial tools that make it possible for most homebuyers to become homeowners. Without mortgages, most consumers would likely be renting for the rest of their lives.
But before you head straight to your bank to apply for a mortgage, you may want to consider working with a mortgage broker in WA, OR, CO, or ID instead. These professionals are distinct from banks and lenders and are tasked with helping borrowers get their hands on the much-needed money required to fund a home purchase. But what exactly is a mortgage broker? What do they do, and how do they differ from banks? Besides, are they even worth working with? What benefits do mortgage brokers in WA, OR, CO, or ID have over banks and traditional lenders? Let’s go over what mortgage brokers are and why you may want to consider working with one over a traditional bank. What is a Mortgage Broker?
A mortgage broker is a licensed financial professional who works with borrowers to help them secure the ideal mortgage product to support a home purchase. Unlike banks – who
look out for their own best interests – mortgage brokers lookout for the best interests of their borrower clients. Further, brokers are able to work with various lenders and therefore access a number of different mortgage products to help borrowers find the one that is best suited for them. Essentially, a mortgage broker is a middleman between borrowers and lenders. It’s the job of the broker to shop around with various lenders to find a mortgage product with the lowest interest rates and fees that best fit the needs of a borrower. Mortgage brokers typically have a vast network of lenders who they work with all the time, and as such, they usually have plenty to choose from. Rather than leaving borrowers with the time-consuming task of shopping around for a home loan, a mortgage broker will tackle that job instead, saving borrowers a lot of time, energy, and stress. With one mortgage application, a mortgage broker can help borrowers apply for a home loan. After collecting all necessary documents, pulling the borrower’s credit history, and verifying income, they can then apply for mortgage products on behalf of their clients. Once a lender and loan product has been settled on, the mortgage broker will collaborate with the underwriting department to help ensure that the mortgage closes and a real estate deal is completed.
How Does a Mortgage Broker in WA, OR, CO, or ID Differ From a Bank? Banks are common sources for mortgages. Many homebuyers tend to head straight to the bank that they do business with when it comes time to apply for a mortgage, but they may be met with limitations by going this route. That’s because banks are only able to offer borrowers the specific loan products that they have. As such, borrowers are rather limited when it comes to what they can get from their banks. Further, banks are in the business of making money, and as such, they’re essentially looking out for their own profits rather than necessarily ensuring that borrowers are getting the best deal possible. Mortgage brokers, on the other hand, don’t work for a bank or a specific lender. instead, they work for borrowers. Rather than being limited to just a handful of products, they have access to a wide array of loans from various lenders that they have within their circle of networks. Brokers are therefore able to deal with lenders that can provide the lowest rate possible and will work diligently to make sure that the best interests of the borrower are looked after rather than that of a bank or lender. How Are Mortgage Brokers in Seattle, Bellevue, Portland, Eugene, Denver, or Boise Paid?
Considering how much work a mortgage broker in WA, OR, CO, or ID does for borrowers and the value they offer, many would assume that borrowers would have to pay brokers a hefty fee for their services. However, borrowers typically don’t have to pay mortgage brokers directly. Instead, they are usually paid a commission by the mortgage lenders that supply the mortgages. That said, it’s important to ask the mortgage broker how they are compensated, as there may be circumstances where they may require payment from the borrower in some circumstances. In this case, the commission for the mortgage broker would be paid at closing and would be added to the list of closing costs. The fee could also be rolled into the mortgage. However, with the latter option, the fee could end up costing more as interest would be paid on it over
the life of the loan. If borrower compensation is required, it’s important for borrowers to do their due diligence and ask the right questions. What About Online Mortgage Brokers? These days, borrowers have digital technology at their fingertips, making the mortgage application process as convenient as ever. There are plenty of reputable online mortgage brokers on the scene, providing borrowers with a unique and convenient way to obtain the mortgage they need to finance their home purchase. In fact, some of the best mortgage brokers come in the form of online brokers. Borrowers simply submit all documents online and fill out an online application, and the mortgage approval process can begin. Of course, it’s important for borrowers to be diligent about who they work with and ensure that the online mortgage broker they consider is trustworthy and legitimate in the lending sphere. Final Thoughts Mortgage brokers certainly have some distinct perks over working with banks when it comes to obtaining a mortgage. There are more lenders and products to choose from, and they take the legwork out of having to search hi and low for the perfect mortgage product. When it comes time for you to apply for a mortgage to buy a home in WA, OR, CO, ID, consider calling a mortgage broker to help. At Sammamish Mortgage, we’d be happy to
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