Lenders vs Brokers?

The thing that I love most about writing these blogs is that I can take the time to INFORM people on a wide variety of subjects.  There are SO MANY misconceptions that exist about so many things.  

One misconception that I face regularly is that mortgage lenders and mortgage brokers are the same thing, that those terms can be used synonymously.  Not true!  There are many differences between the two as I hope to illustrate in today’s blog.  I will also show that not all lenders are created equal!

I’m a mortgage LENDER, a licensed professional and proud employee of Fairway Independent Mortgage Corporation. I deal directly with customers on their mortgage, and my job doesn’t stop until you have closed on your chosen home. From application to funding (or cradle to grave as I like to say), if I do your loan I will walk you through each step, explain all of the details and fees, and work with your realtor to ensure that your experience is a great one!  

 

Mortgage brokers, on the other hand, are professionals who match each client with a lending company.  They work with a variety of lenders, including banks and credit unions as well as independent investors.  Brokers have access to numerous loan programs and will match your specific desires and financial situation to a lender that fits your needs.

 Because brokers have this access, they may be able to find a better rate, or help clients who may not qualify with a bank or credit union, all great points.  They also personalize your experience based on your specific needs much more than your average lender at a bank or credit union.  BUT where clients sometimes go wrong is not understanding the fees that brokers may charge in addition to other required fees and closing costs.  On top of that, once clients are matched with their lender, some brokers end their interaction with the client, causing confusion and potential delays.

Could a broker save you money?  It’s definitely possible, but you MUST thoroughly understand the ins and outs of your mortgage regardless of how you obtain financing.  And if anyone, broker or lender, can’t thoroughly explain all of these details to your satisfaction then it’s time to find another mortgage!

This is where I come in and what I’m passionate about in my career.  Working for a finance company that specializes in mortgages (as opposed to a traditional bank with many departments), not only do we have a tried and true system to close loans in record times (sometimes even in three weeks!), we have he same access to the loan programs as brokers WITHOUT the sometimes hidden fees.  We offer conventional, VA, FHA, USDA and reverse mortgages, and will work with clients of all financial situations.

Whereas your typical lender may simply tell you that you don’t qualify based on your credit score, I’ll develop a detailed plan of action with you to get your score up to where it needs to be to fit your loan product.  More importantly, I’ll do my best to set you up for your long term financial success, all while keeping your file open so that your transition back to actively pursuing your mortgage is as seamless and smooth as possible.

Most people I meet can’t tell me the difference between a lender or a broker.  The ones that can may tell me the pros and cons of each.  My goal is to provide the best of both worlds:  the strong, secure financial foundation of a bank or credit union coupled with the personalized experience of a broker.

In the end, it’s about going with who you trust:  who will look out for your interests and ensure that you have the best possible experience?  Fourteen years ago I applied for a mortgage with a traditional credit union and had a HORRIBLE experience.  I’ve made it my goal since then to treat every customer with the respect, compassion and dedication that they deserve.

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Contact me today!  I look forward to helping you move into your dream home!