Imagine getting into escrow and preparing for closing only to find out your loan is denied. This happens, especially when you work directly with a bank or lender as opposed to a broker. Why? Going direct to a bank or lender is putting all your eggs in one basket, where a broker has a multitude of lending options.
Let’s face it, it’s not easy finding the right home to purchase these days. Inventory is still the biggest problem facing the housing market (not counting lackluster job growth) and unless you are all cash buyer, it can be very difficult to find and then come to terms with seller, possibly beating out the other offers.
So once you finally find the right home, get your offer accepted, hooray!, then comes time to get the financing or secure your mortgage. In today’s lending climate, where credit is tight, there are any number of reasons your loan can get denied, and often times they can be hard to identify or anticipate up-front.
Then you cancel escrow and lose the home, and hopefully get your deposit back. Or you can find another source and start the process again. But here’s the problem: there may not be time to start all over again and therefore the seller can go with another buyer, and you lose the home.
It’s similar to betting the farm on one lender/bank, or your future home in this case and that is risky.
Going with a local mortgage broker is a safer move because they work with many different lenders and can easily and quickly submit your loan package to another lender at any point during the process, thereby hedging your position but also giving your more assurance you will close.
About the Author ~ Since 2003, Beau has been a mortgage professional and has successfully closed over $100 Million in mortgages. He is the Founder and Senior Mortgage Advisor at Transparent Mortgage and has worked for Luxury Mortgage, Bank of America and Impac Funding. Beau is truly committed to serving the needs of his clients and raising the industry standards for integrity and transparency.
Questions, Comments, or Personalized Rate Quote? Contact Beau today: 619-888-3606 or firstname.lastname@example.org