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Home Ownership Preparation :: Independent Mortgage Advisors
Independent Mortgage Advisors:
The Benefits of Using Independent Mortgage Brokers or Advisors
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Independent mortgage advisors can save you money. How? By acting as your advocate and guiding you through the sometimes complicated process of home mortgage application.
To learn about the benefits (and some of the drawbacks) of hiring an independent mortgage broker or advisor, keep reading.
No Affiliation with a Specific Lender
Unlike the mortgage specialist at your local bank or credit union, independent mortgage advisors aren’t affiliated with a specific lender. That means they’re not trying to sell you on a specific product.
So, instead of trying to convince you that one particular product is the best, an independent advisor will actually find the best product for you across a range of lenders, not just one.
Required to Serve Your Interests
Licensed mortgage brokers or independent mortgage advisors are required by law to serve your interests and act on your behalf.
So, unlike a lending officer or mortgage specialist that’s affiliated with a specific lender, they’re looking out for you and working to find you the best mortgage for your needs.
In-Depth Knowledge of the Industry
Independent mortgage brokers have a lot of experience working in the mortgage industry – it’s their day-to-day lives.
That means they are (or at least they should be) on top of new trends, new mortgage products, possible interest rate predictions and the general ins and outs of the mortgage industry.
Experience Negotiating Lower Rates
An independent mortgage broker or advisor has experience negotiating better interest rates on behalf of a client. That means instead of negotiating your own rate or terms, you have an advocate working on your behalf to secure the lowest rate possible.
Drawbacks to Hiring an Independent Mortgage Advisor
Hiring or utilizing the services of an independent broker or advisor isn’t always roses and daisies, there are drawbacks. These include:
Preference for Higher Commission Mortgages
Most mortgage advisors and brokers earn money by receiving commissions from lenders on their referrals. That means a mortgage advisor may push you towards a mortgage product that gives them a higher commission.
Alternatively, you can hire a fee-based mortgage advisor or broker that earns their income through a flat fee, payable by you. This insures that their dealings are direct and motivated by your interests, not the mortgage lender’s.
Obscure or Lesser-Known Mortgage Lenders
One of the biggest advantages of hiring an independent advisor is that they can direct you to the mortgages and loans that are lesser known, not as widely available and maybe cheaper or better suited to your situation or needs.
This can have drawbacks though. Instead of dealing with your local, neighborhood bank, you may now be borrowing from a foreign holdings company with no face or name.
That said, most independent mortgage advisors will work with you to find not only a loan that’s right for you, but also a lender.
See also:
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Home-Ownership-Preparation.com :: Independent Mortgage Advisors