Why Should I Choose A Mortgage Broker?

Simply put, making the wrong choice about your mortgage can cost you thousands of dollars. Why use a mortgage broker versus a big bank ? Let me explain some of the reasons why. 

1) Brokers do the shopping for borrowers in order to secure the best rate option because they are getting wholesale prices. Mortgage wholesalers used by brokers are able to do this because they use the broker as their conduit to sell their money. The broker or wholesaler's money is cheaper because the wholesaler doesn't have to advertise or pay for a pretty big building on the corner downtown. All this fluff costs money and don't let the bank convince you that you're not paying for it...you are ! Your paying for it in the form of junk fees and increased rates ! The Mortgage Depot has no commitment to one wholesaler, we shop several sources for you and get you the lowest rates possible. 

Here is an example....you go into a bank and ask them for their rate on a conventional loan. The loan officer, who by the way is not tested or licensed as a mortgage broker is, pulls up his banks rates and gives them to you. Period. The loan officer has no ability to shop any other rates. He or she works for that particular bank and only provides you with the retail rate his or her bank offers. And then when the customer say they are going to shop the rate the loan officer tries to convince you that you shouldn't use a broker because they charge broker fees or transfer the servicing of the loan. Which leads me to #2 and #3

2) Don't let any bank tell you that ALL BROKERS CHARGE BROKER FEES. IT'S SIMPLY NOT TRUE !!!!!! Mortgage brokers get LOWER wholesale priced money from their sources and brokers have the ability to pass the savings on to the customers. The Mortgage Depot rarely charges a broker fee and when they do it's because the customer wants their loan priced that way. Once again, brokers are able to do this because they don't have to advertise or pay for that pretty building mentioned earlier. 

3) And I've heard this one for years...you go into a bank and they say "don't use a mortgage broker because they sell or transfer all of their loans". Let me enlighten you....in this day and age most loans and/or servicing is sold by any mortgage lender ! Every lender, whether a bank or not, has the right to transfer their loan serving. There are plenty of customer upset out there because their bank loan was sold after they were told by their bank that it wouldn't be. Lenders tranferring loans is part of the business and does happen from time to time. 

The bottom line is this....people or companies are in the mortgage business to make money. Don't let any banker convince you otherwise. It's simple, small family owned shops like The Mortgage Depot have less expenses to cover so we are able to offer lower rates and no junk fee loans. Shouldn't you as a consumer at least shop and compare ??????

To find out if a mortgage loan is right for your situation, please Contact Us.