Mortgage Broker, worth it ?

Question

Are Mortgage Brokers worth it ? What’s your experience with it ?

Andrew Freed · Answer

@Tatiana Conta - I agree with a lot of the sentiment. I like brokers as well since they can shop around for many options. Just like with any service provider, you need to do your due diligence and find a reputable loan officer who offers good rates. Nonetheless, having the ability to shop for multiple loan products rather than being restricted to a limited amount of offerings via a direct lender is best in my opinion. I personally have used brokers in all of my transactions and it has worked out great.

One thing I would like to point out is direct lenders tend to have an easier time working with underwriters since they are stationed within the same organization hence smoother closings. Brokers have to work with underwriters from other organizations which does sometime cause disconnects and delays. But if you find a good broker, they have worked through all of those downsides already and understand the requirements of each underwriter.

Sergio Michel · Answer

@Tatiana Conta Real estate agents have loyalties (which are great) to their lenders, and they don't usally shop for what is best for the borrower.

Yes, Brokers do shop for you. Make sure you explain what you want and what you want to do with the property. I will assume being on here it may be for investment. What is the plan for the property, Rental, Flip, house hack what ever yor plan is let him know.

The broker will then shop and (if good) will give you options and let you decide. During the process you will fill out an application, give him/ her information regarding assests, bank info and then will pull your credit score. That score will be active for 30 days and if someone else pulls its during that time, it won't affect your score. So that being said, you can even shop brokers. all brokers have access to more or less the same lenders, some local lenders being the exception.

Just like your agents it's all about relationship created with you and the personality and way of working that makes its a good fit. I hope this answered your question. End of the day you don't have to stay with the broker if you don't get along with them. I've had some hit or miss with real estate agent and some of them I won 't work with again, unless they bring me money.

Hope this helped

Sergio

Alan Lacey · Answer

@Tatiana Conta you just have to shop. Plenty of mortgage brokers set comp much higher than aggressively priced direct lenders. Some direct lenders are priced above brokers. It is a yes now question. 25 years I. Lending will say a aggressively priced lender will be better than aggressively priced broker, but you have to find both.

Sergio Michel · Answer

Yes they are worth it, I am baised though as a mortgage broker.

As a broker, I work with 50 different lenders who all compete to get your business. Brokers fend for themselves and only get paid if you move forward with the loan. Mortgage lenders are usually on salary and don't compete like the rest of us. Lenders are great people but are limited to what they can offer. Most brokers can deal with every situation you may have, from government loans like FHA, VA to Jumbo, Hard money or even loans for Manufactured Housing. Also, most brokers come in at .25% or more lower in interest cost at the closing table. Which can be thousands of $$ over the life of the loan.

You can shop lenders and brokers, give them the same situation and see who comes back with the best deal for you. Good brokers will try to find out what your strategy is over the life of the loan and then try to find multiple loans that may go into that situation. Lenders will only give you what they have on their books.

Whoever you go with do your homework and ask for referrals. Don’t take guarantees from your real estate agents. Best of luck and if you have more question reach out.

Michael Kinsella · Answer

@Tatiana Conta The simplest answer is that some are and some aren't. You may receive better options due to his/her capital markets expertise and connections that they've built up over time. This may result in some savings and/or a more seamless loan process.

Jason Albasha · Answer

I think a lot of people are answering this question incorrectly. The questions isn't asking if every single mortgage broker is worth it, it's asking, in general, is it better to go with a broker or directly to a lender.

@Tatiana Conta Broker's shop lenders for you. You can shop around yourself as well. I'd personally work with a broker as they get you the best deal, yet feel free to shop lenders as well and see if you can get yourself a better deal. Usually not.

You may get promised best case scenarios yet I've never had a client find a better deal than I can get them.

Terri Wyzkoski · Answer

Tatiana, are mortgage brokers worth it?  Some are.  Some are not.  Like any other expert -- a banker, an accountant, or banker -- invest time only with an authentic person that you respect and trust from moment one.

That said, a commercial investor definitely needs two experts when seeking assets:  (1) a hard-working, experienced commercial real estate agent that will spend their time beating the path to find the projects you seek; and (2) a highly responsive, knowledgeable commercial mortgage broker, whose credibility with his/her lender network instantly gives your loan request/project credibility just by association.

Dustin Lauer · Answer

@Tatiana Conta

Totally depends.  I would yes if your are not finding better directly.  That should show you the value.  Best of luck to with your financing needs.

Tatiana Conta · Answer

@Sergio Michel thanks so much for your thorough response!! When you say don’t take guarantees from your real estate agent, what exactly do you mean?

Because I had said I was waiting on getting pre approved first because I thought I’d have 10 days window to shop all lenders without my credit being pulled and he said don’t worry about that, just go with a Mortgage Broker and they would shop for you and your credit would only be pulled once. Is this true ?

Mortgage Broker, worth it ?

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