Using a mortgage broker

Using a mortgage broker - There are many advantages to using a mortgage broker versus going to your local bank in order to obtain a mortgage for a home purchase or to refinance your home. One advantage of using a mortgage broker is the fact that a mortgage broker can shop your loan around through tens, hundreds and sometimes even thousands of lenders in order to find the right lender to fit your specific needs. Whereas your local bank has their specific guidelines and either you fit into their guidelines or you dont.

Mortgage brokers have access to wholesale loan servicers and programs and are able to pass these wholesale rates to their clients. A bank has basically 1 rate for each program. A broker can beat a bank rate by half a per cent or more consistantly.

You may have heard the marketing pitch "When Banks Compete, You Win". That's literally what happens when you use a well respected mortgage broker. Mortgage brokers enjoy "wholesale" pricing from banks, significantly less expensive in fact than what banks are willing to offer borrowers directly. By creating competition between hundreds of banks, investors, and other lenders across the country, mortgage brokers prevent banks from holding you hostage to their "retail" rates and their idea of what program works for you.

The standard definition of a mortgage broker is: "a person or company that acts as an intermediary who sources mortgages on behalf of individuals or businesses."