The first step in buying a home is determining how much you have to spend. This means a consultation with a mortgage broker or bank. Choosing which to work with is a decision that will influence the smoothness of your transaction and the costs of your mortgage. Working with a mortgage broker instead of a bank for a home loan can not only save money but can provide a smoother overall experience with less headaches and better customer service.
Brokers have access to far more loan products and types of loans than a bank, whether it’s FHA loans, VA loans, jumbo loans, a USDA loan, or simply a borrower with bad credit. Meanwhile, an institutional bank might only offer conventional mortgages.
Because of their ability to shop around, you will generally find lower interest rates when working with a broker. Over the years on a life of a loan, this can mean a savings of thousands of dollars.
Local brokers offer more personalized service, where they can carve out solutions to your problems, whether it’s a low down payment, limited credit history, or the desire to limit closing costs. A broker will find solutions if/when any roadblocks present themselves. Your experience will be more consistent because you will work with the same person and their team, as opposed to a large bank with thousands of employees.
Local brokers are tightly knitted into the industry marketplace and are committed to title companies and REALTORS. Reputation and performance are key as their business income depends on happy clients and industry professionals. Brokers work hard to earn the trust of industry professionals and go the extra mile to keep that trust.
To sum it up ~ the pros of working with a mortgage broker:
· Brokers do all the legwork for you, working on your behalf with the lender
· They compare wholesale mortgage rates from a large number of lenders all at once
· Wholesale interest rates can be lower than retail bank branch interest rates
· They have more loan options because they work with numerous lenders
· Can finance tricky deals because of their knowledge and various lending partners
· Are easier to get in contact with, less bureaucratic and offer a higher level of service
One such local mortgage broker with an outstanding reputation in the industry is Delaware Valley Financial Mortgage. Visit their website at www.delvalmort.com