The banks & large mortgage lenders originate, process, underwrite, close, fund, and sell their mortgages in the open market. Almost all mortgage servicing is sold at some point during the life of the loan. In fact, most mortgage documents signed at closing disclose that they sell 95% of their servicing regardless of who originates it.

The broker acts as a middle man & originates and processes the loan while the lender underwrites, closes, funds, and sells the mortgage. The process is the same, but instead of one company touching the loan, there are two.

With loans you have investor guidelines from Fannie Mae, Freddie Mac, FHA, VA, and USDA. On top of that many Banks and Lenders have their own requirements making it even more difficult to be approved for a loan. These overlays may include higher credit score requirements, lower debt to income thresholds, and higher reserve requirements for example.

Brokers have options! They can choose who has the easiest underwriting....fastest service.  They choose the lender who has the strongest appetite for your credit profile and who is willing to compete for your business on any given day.

Lenders have to weigh the risk of each loan heavier than brokers, therefore when it comes to a self-employed borrower they have to qualify the usable income differently. For borrowers that have a lot of money in the bank with no verifiable income or those looking to reduce their taxable liability you will find that a lender can only be so creative.

Brokers have more flexibility when it comes to self-employed borrowers. They are willing to take the most aggressive approach to get your mortgage closed and can be creative. For example, they can do no verification loans, loans for self-employed and investors, and those who want to take advantage of the tax code.

Lenders are typically larger corporations with recognizable brand names but sometimes bigger isn’t always better. Many times these large corporations hold multiple hats which means they aren’t able to zone in and focus on one specality.

Brokers may be a smaller organization, but that means they are able to run much more cost-effectively & efficiently and can pass on savings to clients. They are specialists in mortgages, giving you better customer service and communication throughout the process.

Limited Number of Conservative Products

Broader, much more diverse Product Selection

Since a lender only has their products, there is only one place they can shop the rate- within themselves. If a lender cannot beat or match a rate with a competitor they are at a dead end.

A broker has access to a pricing engine that stack ranks hundreds of lenders nationwide to search for the best rate and cost. Competition drives down rates and costs.