Mortgage Q&A: “Should I use a mortgage broker?”
I get asked this question a lot, and for good reason.
Mortgage brokers are a big part of the mortgage business, accounting for more than 10 percent of all home loan originations.
In fact, their share of the mortgage pie was as high as 30 percent during the mortgage boom, but fell precipitously after the mortgage crisis ensued.
But brokers still serve a valuable role in the industry, and can be quite beneficial for prospective homeowners and those looking to refinance.
Mortgage Brokers Give You Options
Perhaps the biggest incentive to using a mortgage broker is their ability to shop your loan scenario and mortgage rate with a large number of banks in a short period of time.
Instead of going down to your neighborhood bank and asking for a quote, or inquiring with multiple lenders in your area, brokers do the work for you.
Access to Wholesale Rates
They also have access to wholesale mortgage rates, which generally price below retail rates.
Clearly this can be beneficial if you’re looking to get the best mortgage rate out there.
They’re Hands On
If you want someone to guide you through the loan process, a mortgage broker may be a good choice for you.
Most of them provide personal service, meaning you’ll have a direct phone number to reach them, and can even visit them in their office if you have questions.
You might not find the same level of service at the big banks…
To sum it up, mortgage brokers can be a good option if you’re shopping for a loan, but you should always compare their rates and service to those at your local bank, just to be sure.
Read more: Mortgage brokers vs banks.
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