What’s the Difference Between a Mortgage Broker and a Bank?

If you believe that now is the best time to borrow money from your home or to take advantage of lower interest rates, you should consider refinancing your property.

Should you work through your bank or with a mortgage broker, though?

When interest rates are at historically low levels, it is quite difficult to argue against the advantages of refinancing your loan. A few examples include tax write-offs, the ability to invest in other ventures, and the ability to pay down large credit card debt.

“Should I go with a mortgage broker rather than my bank?”

It is very dependent on a few factors:

  • Have you noticed a significant increase or decrease in your income recently?
  • What is the state of your credit right now?
  • Do you want different financial institutions to compete for your business?

What Does a Mortgage Broker Do?

A mortgage broker is an independent loan originator who has access to a wide range of loan programs and a wide range of lending institutions. An experienced mortgage broker is often more successful in matching borrowers with the most appropriate product for their needs than an individual lender because of the large number of lenders at their disposal.

“A broker can put wholesalers against one another in order to force them to compete for your business,” says David Jennings of Eagles Mortgage Company, Inc. in Downey, California. Customers who use banks or direct lenders will only be able to choose from their own products; they will not be able to choose from other sources.” In some cases, an applicant’s poor credit score will disqualify the borrower from receiving one of the cookie-cutter loans that the bank offers. A broker can uncover a plethora of other options for clients to consider.

To ensure that you have covered all of your bases, contact Eagles Mortgage Company, Inc. immediately to find the best solutions that meet your requirements.

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