If you’re buying a home, refinancing an existing mortgage, or taking a cash out refinance to make upgrades, you'll want to consider working with a mortgage broker. But what is a mortgage broker and why do you need one for your home loan?
Read our blog to learn what mortgage brokers do and how they can simplify the home loan process for you.
What does a mortgage broker do?
A mortgage broker is a person who connects borrowers with mortgage lenders. As a borrower, you might work with a mortgage broker when you buy a home and need a loan, or if you have an existing home loan that you want to refinance.
A mortgage broker acts as a matchmaker between you and several lending options. Their goal is to help you find the best mortgage type and mortgage rate for your financial goals.
Not only will a broker tell you how much of a mortgage you qualify for, but they also can work with everyone from your real estate agent to your loan underwriter. They not only help you get the best rate possible, but they also help keep the loan process on track, too.
Benefits of working with a mortgage broker
If you’re on the fence, partnering with a mortgage broker comes with these benefits:
Specialized expertise: Mortgage brokers specialize in mortgages. They’re experts in their field, while a retail banks loan officer is more of a generalist. If you want someone who’s an expert on home loans, a mortgage broker has more experience than a retail banks loan officer — and could potentially help you save even more money.
Potentially pay less: It isn’t a guarantee, but mortgage brokers can negotiate with your lender to lower or eliminate certain fees. They also have a pricing engine encompassing multiple lenders, which allows them to find the best interest rate for each unique loan scenario.
Favorable loans: Mortgage brokers have access to wholesale mortgage rates, which are often lower than what a bank can provide. Brokers also have access to a wider variety of loan options, which can help you find the best option for your financial situation.
The Bottom Line
If you want to get the best deal possible on a home loan or mortgage refinance, go with a mortgage broker. First California Funding works directly with over 25 wholesale lenders, so we can find the best mortgage rate available to you for your home loan. Contact us for a mortgage pre-approval before house hunting!