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Mortgage brokers vs. direct lenders. Differences explained.

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Mortgage Brokers vs. Direct Lenders

This is an explanation on how mortgage brokers and direct lenders compare. A few myths are exposed and some confusion is eliminated. Choosing the right financing source is critical.

Using good mortgage brokers can be like simultaneously applying with all best home loan direct lenders in the country at the same time. Only you know you'll CLOSE with the lowest interest rate and fees at the most advantageous direct lender for your qualifications. Resourceful mortgage brokers shop for you among several direct lenders through the wholesale departments of those institutions.

One major myth is that it costs you more in loan fees by using mortgage brokers due to "middleman" fees. The truth is, you can actually end up with lower interest rates and lower total fees because a mortgage broker will shop the entire market for you via computer and then completely process and submit your loan file to the lender with the best deal for you. He / she will place your loan with the lender offering you the best loan for your particular qualifications. If one lender has a problem with you, the borrower, the property or has higher rates and fees, the broker will take your file to another direct lender and get it done for you at the lowest price. He / she is paid a fair fee for service usually known as a "broker fee" of about 1% of the loan amount. If a broker fee is charged, a loan "origination fee" is not charged. Direct lenders charge an "origination fee" of about 1% but no broker fee is charged. It's a wash in that respect. However, if one particular direct lender doesn't have the lowest rates and fees at time of closing they won't transfer your file other direct lenders for closing without charging substantial processing or cancellation fees. Again, the broker will just go to another lender with your file for closing.

Reputable mortgage brokers only goal is to obtain the best home loan / refinance for you, the customer. You'll get the lowest price available for a fair and reasonable fee for service. NO direct lender or broker can work for free. They'd be gone and out of business next week if they did. Don't get fooled. If it sounds too good to be true.......

An established broker has access to very many direct lenders, hundreds of programs and can shop the market for you on the wholesale level. The customer will pay the lower end of the current retail mortgage market.

If one direct lender has a problem with your qualifications or their rates are too high, we can merely send your file to another direct lender for closing without any extra fees!

A broker works for YOU, not the lender. They don't participate in the interest rates.

The power of volume buying works for you!
Summit Realty and Loan is on line with nearly 250 wholesale lending institutions. We access their latest interest rates and fees in "real time" and can literally shop the entire wholesale market in a matter of a few minutes to find the lowest total interest rate and cost package available. You get lower than retail rates and fees.!

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