Most inquiries about mortgage loans start with clients asking about rate. It makes sense that rate is the driving question because a lower mortgage rate translates to lower interest paid over the life of the loan. While this is an important question to ask, it is more important to know the type of mortgage company you are working with to ensure that you are getting the best mortgage rate. Understanding the difference between retail mortgage lenders and mortgage brokers will help you get the best mortgage rate when you are ready to purchase a home, refinance or consolidate debt with a cash-out mortgage loan.
A retail mortgage lender funds a mortgage loan in their name and is limited to one set of mortgage rates. A mortgage broker has access to many mortgage lenders and offers the lowest rate available in the market. In turn, a mortgage bank offers wholesale rates through brokers by eliminating marketing costs such as advertising and loan officer payroll expenses. The same mortgage loan programs, mortgage processing and underwriting technology and loan servicing from major mortgage lenders but at lower rate!
Savvy mortgage shoppers save time and money by working with a mortgage broker, but all mortgage brokers are not equal. Find out what sets Competitive Home Lending apart from other mortgage companies and feel confident with your mortgage loan.