Over the past few years, we’ve been seeing a lot of growth in the mortgage broker sector. Mortgage brokers are different from traditional lenders. But as a borrower, you may not be familiar with the distinction between the two. You also may not be aware that a mortgage broker can save you money.
A mortgage broker is a company which works with a network of lenders. As the borrower, you either can apply for a loan through a direct lender or through a broker.
Broker vs Lender
When you choose to work with a mortgage broker rather than a direct lender, here are some of the ways you save money:
- Get more affordable rates. When you go to a direct lender, the rates that lender offers are the only rates you have access to. But when you go through a Seattle mortgage broker, you have a company on your side which is willing to do the legwork to bring you the lowest rates available through its network of lenders.
- Put less money down on a home. Want to make a low down payment? A mortgage broker is more likely to be able to make it happen than a direct lender. The broker has access to more lending products (see below) and may even offer additional programs of its own to help keep down payments as affordable as possible.
- Access more lending products. Direct lenders may offer a variety of loan products, but there is no way for that to compete with the entire broad spectrum of loan products offered across an entire region by a network of lenders. So, when it comes to specialized lending products, a broker gives you the best possible chance of being matched with an ideal, affordable mortgage.
- Get access to deals not available to the general public. Mortgage brokers build long-lasting relationships with lenders. Because lenders appreciate the referrals they receive from brokers, they are sometimes willing to offer special low rates in exchange or other benefits. If you do not use a broker, you probably will never find out about these opportunities.
- Avoid costly conflicts of interest. If you talk to a loan officer at a big box lender, that person can only provide you with biased information. Regardless of what type of mortgage might actually be best for you, the loan officer cannot recommend products other than those that the lender provides, which could be very limited. But if you talk to a loan expert at a broker, that person has a lot more freedom with recommendations. The broker’s large network of lenders and loan programs is much less restrictive.
- Time is money. If you choose to go the direct lender route, you will probably end up talking to many lenders before you find what may be the most suitable loan product. That takes a lot of time out of your busy schedule. When you go through a broker, the broker does that work for you, and quickly. In less time than you would spend, you end up with more options.
Blue Square Mortgage Can Connect You With the Ideal Seattle Home Loan
As a Washington mortgage broker, Blue Square Mortgage can save you money by connecting you with the most affordable lending products offered in the Seattle region and throughout the state.
Ready to begin? Please give us a call now at (206) 352-6453 to schedule your consultation. We look forward to answering your questions and guiding you to the ideal home loan.