The days of the mortgage broker who charges an arm and a leg just to get you financing are gone. No longer is the mortgage broker a last resort source of financing.
So why would you see a mortgage broker instead of your family banker?
- Lower rates - even if you know your bank's loan officer, a mortgage broker can usually get you a better rate.
- Mortgage brokers can be more flexible and can try innovative financing for special occasions
- Less running around. Your mortgage broker may even come to your home. Ever see a banker do that?
- Although banks are open longer hours, mortgage brokers will often stay open just to see you.
- The mortgage broker wants you to get a mortgage. In almost all cases the mortgage broker only get paid if you get a mortgage through them the banker is on salary and won't fight as hard for you.
Do be wary of mortgage brokers that want to charge you a fee (either upfront or in the mortgage). They get paid by the lending institution. It pays to ask first 'What a your fees to get me a mortgage?'