California Mortgage Broker

Why use a mortgage broker - There are many reasons that you should use a mortgage broker and many advantages to using a mortgage broker. One reason to use a mortgage broker is because a mortgage broker has access to all kinds of different home loan programs.

A mortgage broker's job is to assess your situation and then shop your loan thru 100 different lenders in order to find you the most beneficial loan for your situation. We have access to over 1200 different loan programs and are able to obtain wholesale rates which can save you $100,000 plus over the life of your loan.

Here's something to keep in mind. As a mortgage broker, I'm completely independent. I'm not employed by or work for any bank or lending institution. I work for my clients. The bank is going to look out for its best interests, isn't it nice to have someone working for you, the borrower, and looking out for your best interests?

Many mortgage brokers have expertise in certain types of loans, such a construction-to-permanent loans, poor credit loans, or reverse mortgages. If your situation has special obstacles a mortgage broker may be the best answer.

A mortgage broker is an individual or firm that acts as an independent agent for both the borrower and the lender of a mortgage loan.

Mortgage brokers are the middle man between you and the lending institution, which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual private investor. A mortgage broker will analyze your financial situation to determine which lender is the best fit for your loan needs.

Mortgage brokers have the advantage of being able to access dozens of rates quickly for similar loan programs from different lenders. Although banks have similar programs, their rates can vary widely. Mortgage brokers, through experience and through searching rates, can find which lenders are offering the lowest rates at any given moment.

Mortgage brokers have more options than banks. For example. if you have poor credit and need a subprime loan, your bank may have access to one option. A mortgage broker would have access to dozens.
Other situations where mortgage brokers would be able to provide you with more options than a bank include manufactured homes, rural properties, commercial properties, first time home buyers, and special credit situations, such as bankruptcies and foreclosures.

Working with a mortgage broker has many benefits. Just to name a few: we discuss and explain the programs that are available to you in your particular situation. We inform you in writing that you loan interest rate is locked and wont change. We explain all the documents in plain English so you understand what you are signing. We explain all the costs involved in closing the loan. We give you a timeline of the loan process. We provide you with a good faith estimate. We also coordinate the final closing of your loan.

Mortgage brokers have access to wholesale rates, where as your local bank only has access to the rates that they offer. This can save you money on your monthly payment, especially if you have a unique situation that your bank will not be able to handle.

Mortgage brokers are also familiar with the area in which they operate. Using someone local has big advantages. With so much mortgage information online, it's hard to know who to choose. If something goes wrong along the way with your loan, it is easier to deal with if you have a loan officer you can meet with face to face rather than a website or 800 number.

A mortgage broker is also able to move your file to another lender should a better deal appear. Or if there is a problem with your file in underwrting your mortgage broker can switch lenders within minutes and ensure you meet your close date. Local banks cannot do this.

Direct Lender or Mortgage Broker - Most people think a mortgage broker is the middle man in a lending transaction and they think that by going to a direct lender they will save time & money. Mortgage brokers have access to multiple lenders and hundreds of loan programs. This gives the mortgage broker an advantage over the direct lender who can only offer you programs that they have.

Mortgage brokers do not lend money. Most of them are firms providing services rather than loans. The lender is the one who provides the money to the borrower at the closing table. The lender also makes the final decision regarding loan approval.

One of the biggest benefits a broker is able to offer is that they are able to offer you the type of product that is best for you, given your current situation. They are not limited to a couple loan types that may only be best for a small percentage of the population.

Many loan officers working for brokers operate on a flexible schedule. They are often willing to drive to meet you at your home - even during the evening or on weekends. This flexibility allows for an entirely different level of service, and can make getting your mortgage much more 'hassle-free'.

A direct lender is generally not only limited to their specific home loan programs but they are limited to use the rates and pricing that their company offers and they also must use thier company's underwriting guidelines. A mortgage broker however is able to shop available programs and different underwriting guidelines to find something that may be more suited to your individual specific needs. Mortgage brokers are also able to shop different rates and pricing. Therefore, you can usually obtain the exact loan you are looking for with the rate that you deserve by using a mortgage broker, as opposed to maybe having to settle with something else from a direct lender.

Although some mortgage bankers have the capability to broker loans out to other banks, most prefer to sell their own loan products, because they can usually earn more in finance charges with their in-house mortgage programs. Mortgage brokers usually have no preference to which bank to submit a loan application to. There only concern is the loan program being right for the borrower.

Direct lenders work with retail rates. Mortgage brokers have access to whole sale rates. Often you can get a more competitive rate by working with a mortgage broker.

Banks - vs - Mortgage Brokers - Mortgage brokers do not lend money. Most of them are firms providing services rather than loans. The lender is the one who provides the money to the borrower at the closing table. The lender also makes the final decision regarding loan approval.

A morgage broker has the ability to utilize hundreds and sometimes even thousands of lenders. By having the flexibility to use so many lenders this gives the mortgage broker access to ten's of thousands of different loan programs and guidelines. In turn, this allows a mortgage broker to find the right loan for each and every individual client. Whereas, most lenders are only able to use one set of guidlines with limited loan programs.

If time is an issure a mortgage broker may also be able the lender who will be able to close your loan the fastest, which will take all the work out of a borrower having to call several different lenders with no guarantee of a closing date.

A Mortgage Broker is essentially a matchmaker between the lender and the client. The loan officer will match the best lender and program with each borrower.

A mortgage brokers main concern is finding the best deal for there client and not focusing on what bank the loan will go through. With a mortgage broker you also have the benifit of having access to the latest and most up to date loan programs. Most banks can only offer there in house programs which are generally limited when compared to a mortgage brokers wide selection.

It is a myth that it costs more to originate a loan through a mortgage broker. Because lenders give "wholesale" pricing to brokers a customer will normally pay no more or sometimes even less to use the services of a broker. When you consider that the cost is no different and the fact that a broker gives you much more to choose from than going straight to the bank it is easy to see why the majority of mortgage loans in the United States are originated by brokers.

Mortgage Brokers are bound by law to disclose all commissions paid to them. Major banks are not bound by law to disclose commissions, as well as many other factors associated with originating a loan. This can result in the borrower unknowingly being overcharged.

Some mortgage lenders do not have retail operations. Loan programs offered by this type of mortgage banks are not available directly to the general public. They are often loan products designed for home buyers who are in a complicated financial situation. Home buyers can obtain these types of home loans only through mortgage brokers.

Banks on the retail level may have unique programs available to the public, however will more than likely be limited when compared to the many loans programs available with a mortgage broker.