There are a few different ways to get a mortgage. You can go through a mortgage broker, or you can go through a direct lender. So, what’s the difference? And which is better for you? Consulting a South Florida quality mortgage corp will help you decide which option is best for your needs.
Mortgage Broker
A mortgage broker is a middleman between you and the lender. They are a financial professional who works with multiple lenders to get you the best rate possible. A mortgage broker in Pompano Beach is not a lender, so they can’t use their funds to give you a mortgage. They just act as an intermediary between you and the lender.
There are a number of reasons why you might want to enlist the help of a mortgage broker. Mortgage servicing companies in Pompano Beach can access more loan options because the broker works with multiple lenders. They shop around for the best rates, so you don’t have to do all the legwork yourself. The broker can also negotiate with the lender on your behalf, which eliminates all the haggling.
Of course, the mortgage broker in Pompano Beach doesn’t provide their services for free, so there will be a small fee. The broker may also only be able to get you good deals from lenders that they have a good relationship with, which could limit your options.
Direct Lender
A direct lender is a bank or credit union that offers mortgage services directly to consumers. Going with mortgage servicing companies in Pompano Beach with whom you’ve done business before can help you get a lower rate and hasten the process.
Some people choose this option because they like to keep all their business at the same company, and if you already have bank accounts or investments with the institution, you could get a discount on interest rates. You may be able to get approved for a loan more quickly because there is no intermediary and because they already have a lot of your financial information.
Also, communication is more effective because you are not relying on someone else to relay messages back and forth; it’s just you and the lender.
However, if you choose one direct lender, you may not have as many loan options to choose from. Also, if your credit isn’t great, you may not be approved. A mortgage broker has access to a number of different lenders who may be able to help people whose credit has some blemishes.
Which Is the Better Option?
The answer depends on your individual needs and situation. If you would like to compare rates and terms from different lenders, then a mortgage broker may be your best choice. If you have good credit and want a lower interest rate or if you want to avoid paying a broker’s fee, then a direct lender may be the better choice. Ultimately, the process for both a mortgage broker and a direct lender is similar. It includes providing documentation, filling out an application, and waiting for approval.
If you are looking for a reliable mortgage company, talk to us at Ace Mortgage Loan Corporation. We are a South Florida quality mortgage corp that provides a wide range of mortgage products and services to meet your needs. Contact us today to learn more about our products and services or to apply for a loan. We look forward to helping you get the best possible mortgage for your needs!