Do you know the difference between a Mortgage Broker and a Bank Mortgage Specialist?
The Mortgage Broker works for you whereas bank brokers are employed by their financial institution. A Mortgage Broker has the ability to offer you mortgage products from a number of lenders rather than just one source. You don’t have to change your banking, all accounts remain the same and your mortgage payment will come out as per usual.
Mortgage brokers are paid the same amount no matter what rate is offered to the client; they are paid a commission from the lender (not the client) based on the mortgage amount funded. Bank brokers rate of pay is generally reduced in direct relation to the amount they discount your rate from the bank’s posted rate which why some clients find themselves having to “shop” around for a lower rate.
Mortgage brokers use their knowledge and experience to negotiate the best possible rate and product for you. When you see a bank broker, that mortgage negotiating is typically left up to you.
Mortgage Brokers must be licensed and must adhere to a strict set of rules laid out by the Mortgage Brokers Association. Bank brokers are not licensed and require no formal training.
Because Mortgage Brokers don't work for a specific lender, you are assured that you will be given impartial advice. A bank broker has a limited number of products to offer and your situation may require a different solution than what they can give you.
For conventional financing, the services of a mortgage broker are provided at no cost to you. If there is a cost of any kind, (which is usually for private financing in the event that conventional financing is not an option; a very small percentage of mortgage lending), you will be advised of those costs up front.
If you have the ability to use the services of a professional Mortgage Broker and have that Mortgage Broker take care of your mortgage needs at no cost, why would you not take advantage of that? Call me or visit my website – I would love to help you!