Pros/Cons Mortgage Broker

[cressida_pimpin]

For all the real estate/banking experts, what are the pros and cons of using a mortgage broker?

[Masked Bandit]

Well, I can't think of a single "con"

Pros would be that the broker has access to many lenders, not just one.

I really don't know who actually gets a mortgage through a bank anymore.

[AZ REALTY]

The pro's to using a mortgage broker are:

- saves you time! You don't have to waste time shopping around with different lenders (ie. gas and time).
- your credit report only gets pulled once instead of multiple times if you shop around.
- they have access to multiple lenders and have an assortment of mortgage products available to them.
- they can generally find you a lower interest rate mortgage as they have access to different lenders and different programs.

[Xtrema]

Originally posted by Masked Bandit
I really don't know who actually gets a mortgage through a bank anymore.

I know smaller lenders have cheaper products. Is there enough protection from the law that there is really 0 cons for not going with banks?

Say lender sold mortgage to someone else yet keep collecting payments and let you get repoed etc?

[barmanjay]

I know alot of mortgage brokers that will come to you (mobile service), so you don't have to take time out of your schedule to go into an office.

Mortgage brokers do have access to many, many lenders, even access to most banks, except RBC (they use their own exclusive brokers)

I had one client that (last year summer) was guarantee'd 4.1 variable,.. but ended up with 4.7 (she was pissed) so I forwarded to one of my brokers I use and she found a great deal after shopping around for her - 3.75 variable

There's no real con to using a mortgage broker

[el-nino]

There's 1 con and its the fact that Brokers can only hold rates for 3 months. Banks can hold rates for 1 year and sometimes 2 years. Other than that, there is no real con. This is my opinion and I am a Mortgage Broker.

[cooperS]

if there is no con to use a mortgage broker, whats the point of dealing mortgage with the bank?

[ZorroAMG]

Well the only other con is sometimes through a broker, you get a mortgage with a small institution or some "no-name" bank. That means security on your loan is lower than the big 5....

Other than that and holding of rates, brokers are win.

[dr_jared88]

The con I had with dealing with a mortgage broker is if you actually need to talk to the lender. They will only deal with your broker and not you directly. Most times this isn't a big deal but I had to try and organize a call with the lender and the city. That was the biggest pain in the ass ever trying to set that up through a broker.

Other then that I don't think there is really any cons assuming your broker isn't lazy or something like that.

[D. Dub]

The biggest downside is that many brokers get volume bonuses from certain lenders -- therefore they have a vested interest in getting you a particular product -- rather than the product in the marketplace that might actually be best for you.