5 Reasons Banks  use mortgage brokers?

 

. You have requested information on

“Why do lenders use mortgage brokers?”  1. Saves them time and money.  The mortgage broker does all the leg work of finding customers, pre-qualifying them and putting together their loan package. As a result, lenders are able to offer discounted pricing to mortgage brokers.   2. Alternative to branch offices. Since personal contact with the customer is usually required, a mortgage broker serves as a lender's branch office.  This saves the lender tremendous amounts of time and money. Through a network of mortgage brokers,  lenders can service a wide number of customers.

3. Provide a matching service.  Mortgage brokers know what each lender is looking for and submit loans that a particular lender is likely to approve. This saves the lender a lot of time and expense since they approve a higher percentage of loans.   4. Mortgage brokers generate about 50% of all loans. Lenders have established wholesale divisions and have account representatives staff just to service their mortgage brokers.   There is a lot of competition amongst wholesale lenders to get  broker-generated business.  5. Save sales and marketing expense.   Mortgage brokers are responsible for all the sales and marketing required to find clients.  Lenders in effect have a large sales force with little overhead cost.  

The loan professional that has made this information available to you specializes in assisting those individuals with obtaining a home loan whether for purchase or refinance.    Your loan professional in most cases can advice you on the best approach and help you with your specific loan requirements.