As a direct lender, I am constantly told by “consultants” that I need to change my business from utilizing mortgage brokers for deal flow to operating directly with the borrower. I have concluded that it is more beneficial for both the borrower and ourselves (direct lender) to operate through brokers.
Here are the top 5 reasons borrowers should utilize mortgage brokers rather than go direct to lenders
1. The borrower does not know most loan offerings, which loan his property qualifies for, or the best loan for his circumstances. A mortgage professional will know the best financing for his situation.
2. Many borrowers will waste 6 months or more applying for loans they don’t qualify for. A mortgage broker will be able to determine quickly where they have the best chance of obtaining financing.
3. If the borrower needs immediate financing the mortgage broker may be able to obtain bridge financing.
4. A mortgage broker will put together a professional loan package that increases his chances for a loan in the least possible time.
5. A mortgage broker will assist the borrower in analyzing loan offers and choosing the one most beneficial . Next post will be why utilizing a broker is advantageous for the lender.