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Why use a mortgage broker versus the bank when shopping for a new mortgage
If you are out looking for a new mortgage or want to renew your
existing mortgage, there are certain things you should be aware
of when visiting the banks. If you are one of those people who
think they can negotiate the best mortgage rates by playing one
bank off of another, you are only fooling yourself. Let me
explain to you how the banks actually work. You will get a much
better deal if you are working with someone who does a lot of
business directly with a particular bank or mortgage company.
They have what is called leverage, which most individuals don't
have. Good mortgage brokers will great contacts with a number of
lending institutions.
It is through these contacts that mortgage brokers will be able
to find the product offering the best rates for you and your
family. You will have to supply your mortgage broker with all
your financial information once. When trying to negotiate
mortgage rates with different banks, you have to supply them all
with your information. So what's the big deal. The big deal is
that a mortgage broker runs your credit report only once. You
want to limit the number of times your credit report is looked
at because each time it is accessed, you rating goes down and
down is not good. When dealing with multiple banks, they will
each run your credit report thus impacting your credit
worthiness rating.
This may not sound important, but believe me it is. You want as
few people as possible accessing your credit period. When
working with a mortgage broker, you are not a faceless, nameless
client. Often, you will be able to create a relationship with
them long term. Mortgage brokers have access to hundreds of
mortgage products and will often be able to get you up to a 1%
better rate than you would have been able to negotiate with your
own bank. The banks on the other hand often cycle through loan
officers as they get promoted every few years. The long term
relationship you have with your mortgage broker will provide
options and products in the future you may need. So if you are
shopping for a new mortgage, contact a mortgage broker first to
see what they can do for you.
About the author:
Amy-Jo Strutt is an expert author and regular contributor to
http://www.reverse-mortgages-loans.com/compare-mortgage-rates.htm
l. If you are looking for information on reverse mortgages,
mortgages, SBA loans, VA loans or home equity loans, check out
http://www.reverse-mortgages-loans.com/mortgage-payment-calculato
r.html
Written by: Amy-Jo Strutt
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