There are several reasons. When using a bank, you have access only to their rates and their programs, and must work within their limited hours. A mortgage broker, on the other hand, has access to numerous programs and rates, and is usually available any reasonable time, via cell phone or email. As a broker, I feel pretty strongly about this one. When you go to a bank, a bank has one set of programs (their own set), and one set of rates. As a result, you’re not always getting what’s best for you. Maybe there’s a program that’s better for you, which will save you money, or maybe there are better rates. At a bank, you only get one set of rates, and maybe this bank doesn’t have the best rates. As a broker, I have access to 30 different banks with 30 sets of rates, not just one. Perhaps there’s a problem with your credit that your local bank won’t do, but a smaller bank that I work with will do. Or maybe there’s a problem with your credit that I can help you fix before we got to work on your loan, whereas the banker will simply say, “We can’t do it.”
As I mentioned, I can shop up to 30 different banks with 30 sets of rates. Some of my banks prefer 15-year mortgages and give better rates on those; some of them like FHA mortgages and give better rates on those. Some prefer bad credit loans, so if your credit isn’t great, you’ll get a better rate with that bank over your local bank. A primary reason to use a broker rather than a banker is the broker gets better rates. Let me put it this way. When you go to the bank, the person you’re assigned to work with is getting a salary, insurance and benefits. The bank pays them to sit at the desk. The bank doesn’t pay me, but they offer me good deals, good rates, to bring them loans, and then I get a commission from the bank. If I bring them a loan, I get a commission; if I don’t bring them a loan, I don’t get a commission. I cost them nothing so it benefits them to give and offer me better rates.
The other thing about going to a bank over a broker is the person who is working for you at the bank is a 9 to 5 employee who sits behind a desk, without any stake or sense of urgency in closing your loan. They’re getting paid the same thing regardless of whether or not they close a loan. If you need them on nights or weekends, they’re not available. When you’re at work, you’re not thinking of your mortgage. When you get home, you think about it; you might read an email requesting some paperwork and wonder, why do they need that? Or you realize the appraisal came in low and wonder, what do we do? These are the things that can keep you up at night. With a banker, you’ll have a sleepless night because you’ll have to wait for the next business day to find out. With a broker, you can get your sleep because you can usually get answers right away.
When you work with me, you get my cell phone number. You can call or text me in the evening, on the weekends, or anytime you have a question. I also answer emails. You can call me after work, and I often make appointments to meet my clients in the evening at their homes. Whenever, or wherever, is convenient for you. I don’t just work banker’s hours; I’m available when you need me. Call or email me today to get started on your mortgage!