Banks can only offer you their own mortgage products. As a Mortgage Broker on Seabrook Island SC, I have access to different combinations of mortgages from all of my lending partners. This allows me to recommend the best product for your specific needs and potentially save you money. When you talk to two other brokers, including myself, you increase your chances of getting approved and finding the perfect mortgage for your dream home on Seabrook Island. Both banks and brokers can offer “discount” pricing to help lower closing costs when buying a home or refinancing.
Whether you choose to work with a mortgage broker or a bank to get a loan for your home, you should be able to negotiate a favorable interest rate and closing costs. A mortgage broker acts as an intermediary by helping consumers identify the best lender for their situation, while a direct lender is a bank or other financial institution that decides if you qualify for the loan and, if so, delivers the check to you. Homebuyers who are self-employed or whose mortgages exceed compliant loan limits often find the best mortgage rates and conditions with a mortgage broker. For the best of both worlds, get loan quotes from at least one broker and one bank when looking for a mortgage to see which one can offer you the best deal.
Sometimes, the lender will pay the mortgage broker (since, after all, it's the broker who does business with the lender). In exchange for this service, mortgage brokers charge a commission to buyers, the mortgage lender, or both. In the case of exclusive mortgage loans, including loans without income verification and loans for unique properties, mortgage brokers are often the best, as they may find an unconventional or atypical mortgage loan for buyers who need it. For example, if you're having trouble qualifying for a mortgage or value convenience a lot, a mortgage broker may be worth it for you.
For people who don't want to have the hassle of contacting different banks, mortgage brokers are a better option. Mortgage brokers, by definition, work with numerous lenders, so they have access to more mortgage lending programs. Even if your account balances are small, the bank may not pay some costs because you don't have to pay a commission on your loan to an outside mortgage broker. Mortgage brokers must disclose their fees in advance, so that's something you can ask when looking for a broker.
Like some commission-based financial planners, some brokers work primarily with certain lenders or are partial to them, which could influence the options they offer you. When working with a mortgage broker, it's wise to do a quick comparison to see if the rates and commissions they offer are truly competitive. While a mortgage broker is a one-stop shop for multiple options, their commissions come from the lender, so it's possible for well-qualified buyers to get better rates and commissions by eliminating middleman.
