Mortgage Brokers Are Your Loan Guide

Mortgage brokers work with borrowers throughout the entire loan process until the deal is closed. Overall, they’re probably a lot more available than loan officers at retail banks, since they work with fewer borrowers on a more personal level.

This is another big advantage over a retail bank. If you go with one of the big banks, you may spend most of your time on hold waiting to get in touch with a representative. Additionally, if your loan is declined, that’s the end of the line. With a mortgage broker, they’d simply apply at another bank.

Mortgage brokers were largely blamed for the mortgage crisis because they originated loans on behalf of numerous banks and weren’t paid based on loan performance.

Studies have shown that these originate-to-distribute loans have performed worse than loans funded via traditional channels. But the big banks were the ones that created the loan programs and made them available, so ultimately the blame lies with them.

Regardless, you shouldn’t get yourself caught up in the blame game. It is recommended that you contact both retail banks and mortgage brokers to ensure you adequately shop your mortgage. Most borrowers only obtain a single mortgage quote, which certainly isn’t doing your due diligence.