San Diego, CA (PRWEB) August 10, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Oftentimes, borrowers may often find themselves contemplating whether they should gloss over mortgage brokers in favor of a direct lender. With a newly released article, Loan Love goes into detail about the advantages of using a mortgage broker as well as the possible drawbacks.
The Article, titled “Mortgage Broker vs Banker (The Ultimate Smackdown!)” presents loan borrowers with two different options when scouting for loan lenders. On one side of the scale, there are mortgage brokers and on the other side, bankers. To answer the mortgage broker vs direct lender debate, the article discusses in detail about each. The article continues to explain the pros of a mortgage broker:
“At first glance, it appears mortgage brokers have an obvious advantage over individual bankers because they have a broad knowledge of the industry and of the products that are available from a wide pool of lenders, some of whom may be located hundreds or even thousands of miles away from you. Brokers know which lenders will be most likely to work with specific borrowers which can be an important consideration for buyers in special circumstances, such as those with poor credit or those who are self-employed. And they also can identify lenders who are offering special discounts or programs that may not be available on the open market.”
These benefits can be tempting when looking a loan lender, but the article advises to be well aware of some the cons too, namely in the form of commission. The services of a mortgage broker don’t come free of charge, and this will reflect in the form of a referral fee to be paid by either the borrower or the loan lender itself. A loan borrower on low credit may find themselves being overcharged with more than they can handle if the commission fee is high. Also, mortgage brokers may be motivated by larger commission fees. This will leave out other lender options in favor a specific lender that may not fully hold a client’s interests at heart. This biased attitude is what caused the mortgage collapse a few years back.
In the case of finding a loan lender through bankers, the Loan Love article explains that a loan borrower can receive exclusive benefits without additional commission. These benefits include discounts on loan, especially if the loan borrower has an established history with the bank. However, this means you will be limited to the loan products of the bank, and comparing products from lender to lender can prove to be hassle. Going directly to a banker will require some foresight and knowledge on the lending process which can be time consuming. Lacking the help of a mortgage lender will also give loan borrowers a less diverse selection of direct lenders when searching for a loan.
The Loan Love article summarizes by saying “Whether or not you go with a broker depends on your own comfort in shopping around on your own. Generally speaking, unless you have poor credit, you’re self-employed or you have other special circumstances that require access to a broader range of options, going it alone can save you the cost of a broker fee and taking time to really understand the mortgage process can also make you a smarter consumer overall. For best results, talk to friends and family members about their experiences before you make your decision.” So, while there may be key benefits in using a mortgage broker, whether a mortgage broker is right for a loan borrower should be considered situational.
To learn more on the advantages of using a mortgage broker, please visit LoanLove.com.