As a home buyer with options left and right, it’s important to have a lender who is able to provide a range of mortgage options . Here are a few reasons why it can be beneficial to work with a lender who is a broker rather than a bank or retail lender:
Brokers have access to a wider range of mortgage products: Banks typically offer a limited selection of mortgage products, whereas brokers have access to a wide range of products from multiple lenders. This means that brokers can provide you with more options and can help you find a mortgage product that best fits your needs and financial situation.
Brokers can offer competitive rates and terms: Because brokers have access to a wide range of mortgage products from multiple lenders, they can often offer competitive rates and terms. This can be particularly beneficial for clients who may have less-than-perfect credit or who may have specific needs that aren’t met by traditional mortgage products.
Brokers can provide personalized service: Brokers are often able to provide more personalized service than banks, as they have the ability to work with a wide range of lenders and products. This can be particularly beneficial for clients who have unique or complex needs, as brokers can help tailor a mortgage solution to fit their specific situation. Most brokers have access to Non-QM loans, which are Bank Statement and DSCR loans, allowing more options and flexibility for your clients.
Brokers can provide more flexible underwriting: Banks often have strict underwriting guidelines that can be difficult for some borrowers to meet. Brokers, on the other hand, often have more flexibility when it comes to underwriting, which can be beneficial for clients who may not meet traditional underwriting standards. A bank typically only has one set of guidelines to work off of, while a broker has up to 50 different lenders they can put a file with, opening up 50+ teams to underwrite and work loans.
Overall, working with a lender who is a broker rather than a bank can be beneficial for realtors, clients, and other mortgage industry professionals as it can provide everyone with more options, competitive rates and terms, personalized service, and more flexible underwriting. By working with a broker, you are ensuring that you are getting the most options, a wide spectrum of programs and rates, as well as a customized service with more flexibility for your home buying experience.