subject: The Advantages And Disadvantages Of Getting Mortgage Lender Vs Mortgage Broker [print this page] Because of the downfall of the US economy, the mortgage industry has become more rampant on the news. You can always hear something regarding foreclosures, mortgage industry, refinances, loan modifications and a lot more almost each night. And because of this, you will need to make a wise decision if you are planning to get a home loan. One of the most important decisions you have to make is to choose between a mortgage lender vs a mortgage broker. There are many people who prefer one over the other. But what can you get from each? The disadvantages and advantages of each of these options will be discussed in this article.
There are several reasons why most loans are being started by mortgage brokers nowadays. But the biggest reason is because the brokers are able to look around in order to give the consumer the best home loan available with the best lender as well. Since they are familiar with the different lenders, they can easily get the loan of the consumer to whatever lender that has the best service and interest rates. Aside from this, they are also aware that there are some areas wherein certain lenders are more strict on as compared to others. Because of this, consumers will benefit from the expertise of the broker in the end.
However, a disadvantage of choosing a broker over the lender is because there are some which are not good with the job. Aside from submitting your loan to a wrong lender, they will only waste your valuable time. Because of this, it is important for the consumer to really find a good and a trustworthy broker which is knowledgeable in the different products that are also offered by various lenders.
On the other hand, if you go directly to a lender, you will have a benefit of having your loan directly worked on by the underwriter which is the partner of your loan officer. Since the loan officer acts as a salesperson for just one mortgage company, he will be knowledgeable of the products more than the broker. This is because brokers are working for different lenders while the officer is handled by only one. Because of this, consumers can get the advantage of knowing directly the issues involved once they apply for a loan.
However, direct lenders can only provide the consumer just one set of products. If the consumer is not qualified for the products presented to him, then he might need to go elsewhere and find another mortgage lender. This can waste the valuable time of the consumer. But if the mortgage lender will pre-approve the consumer, then there is a good probability that the consumer will chose the loan which is offered by the lender.
Either option works just fine. Whether you choose a mortgage lender vs mortgage brokers, the end product will still require you to have a good lender and a good broker. This is because if you don't, your time is wasted.
by: Walter Sigmore
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