Why not a Bank? Why not a Direct Lender? Why a Broker!!!
*Lots of Brick and Mortar and High Salaries = Higher than necessary rates.
*Limited Programs, if you don’t fit that Banks’ “mold”, you must start the process over.
*Strict Guidelines, Banks must conform. No one has authority to make concessions.
*Multiple stages, multiple people in your business, with no one person to represent your file.
*Loss of control, once your file enters the corporate structure, no one person is accountable.
*Operations, Chain of Command and volume, can be so large, the process slows down.
*Banking hours limit accessibility of information, as well as hours of productivity.
*Since they don’t need your business, you’re a number, a customer, not a client.
*Lends money they get from another Bank, or Line of Credit. They can’t be flexible.
*Their Underwriting Guidelines have “Overlays” on top of the Bank’s Lending Guidelines.
*Typically have only one, maybe two sources of revenue to lend from.
*Because they lend borrowed money, the pricing is not always as strong as it could be.
*If your file doesn’t “Fit the Mold”, you are forced to start over somewhere else.
*Lower overhead = better rates
*Multiple lending institution enables us to shop the rate, so you don’t have to.
*One shop with multiple programs, with multiple options, makes for more competitive pricing.
*Flexibility in guidelines, what one bank can’t do, another lender can, without you starting over.
*Standard chain of events make tracking the progress of your file easier.
*Accountability, one person pushing your file through the process, with one common goal.
*Personal service from start to finish with only one person to contact.
*Commissions reward your Broker for Performance.
*Each file represents a person, a relationship.
*Typically accessible by phone after “Normal Banking Business Hours”.
Because each person’s needs are different, each person needs to be represented differently.
Brokers have the ability to manage an individual’s needs, from multiple lending institutions, with multiple programs, to put one lender’s pricing, against another lenders pricing, without the borrower running all over town trying to shop and compare one, against the next. All this can be done with one credit report, rather than running several credit reports. This means fewer fees, fewer inquiries and far less stress on a borrower!
Because Brokers aren’t paid salaries or hourly rates, and they are typically paid on a commission basis meaning, they have a vested interest in not only closing your loan, but closing it as quickly as possible, and as inexpensively as possible, so that they can earn the opportunity to receive your referrals.