Using a Local Mortgage Broker-Loan Officer vs. a Bank

When you are in the market for a mortgage, you have two basic options. Some people will go to a bank and apply for a loan. However, a local loan officer may be a better option. Mortgage brokers navigate loan options on behalf of their clients, the home buyer, to help them find the best option. Here are some of the advantages you could enjoy by partnering with a local mortgage broker for your home purchase.

1. Access to More Mortgage Options

One benefit of working with a local mortgage broker versus a bank is the fact that you may have more mortgage options from which to choose. Working with a local broker may often provide you greater variety and creativity, increasing the probability of finding a loan that fits your needs well.

2. More Personal Attention

A local loan officer is working for you, not a banking institution, which allows them to give you more personal service and take the time to find the best possible deal. Mortgage brokers/loan officers will often explore your goals, both for the short term and the long term, and help direct you toward a mortgage product that fits those goals.

3. Better Local Market Knowledge

A local mortgage broker will be more in tune with your local markets than a bank and can help guide you in the details like home appraisals, home values, and interest rates. While brokers do face some ethical and legal limits on how much they can advise their clients, the local knowledge will be advantageous as you decide how to move forward with your home purchase.

4. Less Time Spent on the Process

When you work with a broker instead of through banking Lenders, you can save time. Your broker will give you one mortgage application. You complete that pre-qualification one time, and the broker will provide you the loans recommended for you based on your details. In contrast, when you get a loan through a bank, you may need to apply pre-qualify with more than one Lender before you find a loan with the terms that fit your needs.

A mortgage broker saves you time by doing the work for you. Instead of you having to call Lenders and research your options, the broker will find the loans that fit your needs and goals and present you with your options. While you may still want to do some research to understand your options, this saves a significant amount of time in your home and mortgage search process.

5. Potentially Less Cost

A mortgage is an investment, and it can be a costly one. Sometimes working with a broker means you may save money. First, you may save money by finding more potential mortgages and choosing the most advantageous option. Second, you may be able to cut your fees by working with a broker. Brokers have negotiating power with Lenders, which may mean that some of the optional fees, like application fees, are dropped; this can may add up to hundreds of dollars of savings at closing.

6. Closing May Be Faster

Finally, working with a local loan officer may lead to a faster closing with more streamlined paperwork. The end result means you may get into your home more quickly.

7. Mortgage Brokers Work Well for Unique Circumstances

If you are a buyer with a unique financial situation, such as being self-employed or having a recent employment change, you may need a more creative financing option. Your mortgage broker knows which loans fit these needs. By working with a local loan officer, you may avoid numerous rejections in your search for a loan that fits your unique situation.

You have many options when it comes to funding your home purchase. Working with a local mortgage broker can help ensure you make the right mortgage choice. If you want the most products available to you to choose from, start your mortgage search with a local broker.

Sources

https://www.investopedia.com/financial-edge/1112/advantages-and-disadvantages-of-using-a-mortgage-broker.aspx

https://loans.usnews.com/articles/should-i-work-with-a-mortgage-broker

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