To Broker or Not to Broker- that is the question!

    I am talking about a mortgage broker. Should we use them? I am a well-seasoned Realtor here in Jacksonville, Florida. Let’s be honest, not only have times changed but we are in unprecedented waters of change. Like most realtors, in the past I had relied mostly on my tried and true lender tied to a major reputable bank. I did not see any real benefit of using a mortgage broker.

    These days I am finding that sometimes you need 2-3 lenders to close a sale. More and more realtors are realizing the benefit of using a mortgage broker just for this reason. If needed, a broker can submit the loan to multiple lenders until he finds an approval without stressing out my client since he simply forwards the documentation he already has to the other lenders. This saves time and stress because without a broker you would have to start all over if you wanted to apply to multiple banks on your own.

    After further involvement with a broker I gained a deeper understanding of their function and the additional benefits they added to my business.  A mortgage broker is typically associated with many banks. Sometimes over a hundred but they typically utilize 3-5 major lenders on a regular basis. The others are there when they need to place a loan for unusual or non-typical situations that typically involves credit or property types.

   For example, a borrower wanting an FHA loan with only a 580 middle credit score would have a hard time finding loan approval with a major lender since they typical require a 640 or at best a 620 middle credit score. Most brokers have access to lenders that accept FHA loans with a 580 mid score. In addition a broker can also find lenders who accept properties that the mainstream lenders shy away from such as manufactured homes or condos.

   A word of advice before you begin working with a broker, be sure he/she has many years experience as a loan officer since they need a very good understanding of the business to work in that environment.