Quick Answer: Is it better to have a local mortgage broker?

Is it better to use a local mortgage broker?

Your local lender may not offer the most competitive mortgage rates around, but if you find a lower rate elsewhere, they may be able to match it. Keep in mind: As little as 0.25% difference in your interest rate can translate to thousands of dollars saved over the life of your loan.

Is it cheaper to get a mortgage through a broker?

Pricing with mortgage brokers can be just as competitive as a bank, as long as the broker doesn’t take too much off the top. … Wholesale rates can actually be much cheaper than retail interest rates you’ll get with banks, meaning a lower monthly mortgage payment.

Is it worth going through a mortgage broker?

Is a mortgage broker worth it? There’s generally no direct cost for using a mortgage broker, so their worthiness ultimately depends on the quality of the loan they help you secure. If they help you into a suitable loan with one of the lowest interest rates for what you’re after, then great.

Do Realtors prefer local lenders?

Sellers and listing agents typically prefer when buyers use local lenders. They know the norms of our market. If you’re in a competitive situation, using a respected local lender may just tip the scales in your favor.

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Why are local lenders better?

Smaller, local lenders typically have one major advantage over the big guns: Because they’re a smaller operation, they may be able to offer you a more personal touch. “A smaller lender lives off your future business,” Ailion says.

Why you shouldn’t use a mortgage broker?

Working with a mortgage broker can save you time and fees. Cons to consider include that a broker’s interests may not be aligned with your own, you may not get the best deal, and they may not guarantee estimates. Take the time to contact lenders directly to find out first hand what mortgages may be available to you.

Is it better to get a mortgage from a bank or mortgage broker?

A mortgage broker can offer a wider array of options and streamline the mortgage process, but working directly with a bank gives you more control and costs less. Whether it’s better to work with a mortgage broker or get a home loan directly from a bank depends on your financial situation and your preferences.

Should I speak multiple mortgage brokers?

Having multiple offers in hand provides leverage when negotiating with individual lenders. However, applying with too many lenders may result in score-lowering credit inquiries, and it can trigger a deluge of unwanted calls and solicitations.

Is it OK to use multiple mortgage brokers?

The short answer is yes. You can apply with as many lenders as you want; there’s no penalty for applying more than once. And comparison shopping is proven to reduce homeowners mortgage costs by hundreds — even thousands — of dollars.

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