Mortgage Broker vs. Local Bank

by Debbie Wilson
Loan Page Columnist

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If you're thinking about buying a new home but are overwhelmed with the many mortgage options available, consider utilizing the help of a professional mortgage broker. While choosing your new home might may be one of the biggest decisions you'll ever make, choosing a mortgage to finance that home could prove to be even bigger. A mortgage broker can help guide you through the new home loan process and turn your dream into a reality.

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There are many reasons why a large percentage of new home loans today are originated through mortgage brokers. Not only do they possess sound knowledge about the entire loan process, but they usually deal with mortgage lenders from across the nation. This network can help provide you with access to the most competitive rates and options available. But how does it all work?

Advantages of the Mortgage Broker

A mortgage broker is a company or individual that works closely with wholesale mortgage lenders to provide customers like you with a wide selection of mortgages. The mortgage broker originates the loan while the mortgage lender funds the loan. One of the best advantages of using a mortgage broker is that they have access to a wide variety of loans and competitive rates. Additionally, mortgage brokers tend to be highly specialized, dealing primarily with mortgage loans. Finally, many mortgage brokers are highly motivated to quickly and effortlessly get you an approved individualized loan.

Local Bank Lender

A local bank, on the other hand, may not have your best interest in mind when originating a new home loan. Why? Well, most banks don't have access to a large variety of loans and rates. You may end up paying more for the exact same type of loan. Also, banks deal with all types of loans and thus don't have the specialization that a mortgage broker might have. This includes less time available to prepare loans, stricter underwriting standards, and less personalization.

So if you're all ready to make that dream of owning your first home a reality, look no further than the help of a mortgage broker. The right new home loan will help provide you with happiness and financial security for years to come.

About the Author

Debbie Wilson owns and operates a lakeside resort, managing all aspects of operations, including marketing and promotion. Her previous experience includes management and profitability consulting for a national healthcare company. In this capacity, she oversaw a five-state operation, utilizing her extensive knowledge of healthcare billing, A/R management, and human resources. Debbie holds a B.A. in Business Management with a minor in Physical Education.

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