Finding a deal on a mortgage is far more than filling out an application with banks and lenders and hoping one of them will give you a low-interest rate with great terms. In today’s lending market, mortgage brokers are the key players who play a significant role in finding best deals for prospective borrowers. Keep this in mind when deciding to apply with a bank or mortgage lender: only brokers work with a network of lenders, and each of those lenders offer varying interest rates and terms.
Historic Mortgage Approvals and Interest Rates
Banks and mortgage lenders today continue to loosen their lending standards as interest rates hit historic lows and the Federal Reserve continues to remain neutral on raising the benchmark interest rate in the near term. This is good news for you as a borrower, as it opens the door to competition between lenders. But it leaves you with so many mortgage choices that it is almost impossible to match your needs to the right lenders. That is why mortgage brokers play such a significant role because they can eliminate banks operating under the guise of good lending models.
The Role of Mortgage Brokers
Mortgage brokers act as middlemen in your mortgage transaction. Brokers direct you to regional and national lenders that are willing to work with you based on your financial and personal information. Essentially, mortgage brokers save you the time it takes shopping for a mortgage that fits your budget and your lifestyle. Using their networks, brokers will find you favorable loan rates because they are working on your behalf and working directly with the banks and lenders.
As banks continue to issue more mortgage approvals as the housing market continues to stabilize from the crash of 2008, you need a broker that can help you eliminate the red tape and cut to the chase, which is how low can the lender go on your interest rate. Remember this, by working directly with the bank, you’ve narrowed your mortgage options down to one choice. With a mortgage broker, you’ve opened the door to an entire network of banks and lenders.