If you’re buying a home or simply refinancing, the first decision you need to make is where to obtain financing. The majority of people go to their local bank because they trust them and they aren't sure where else to go. But did you know there are BIG differences between Mortgage Brokers and your local bank?
 
The loan officers employed by banks, credit unions or other lending institutions are limited by the products their bank offers. If the bank has certain guidelines that you don’t meet, they can’t help you. Banks are very conservative in their guidelines for lending and this means certain people who don’t fit in the banks “neat little box” can’t get a loan. Brokers on the other hand have access to hundreds of lending institutions, which makes them a better choice for everyone; especially borrowers who may have more difficulty obtaining financing. Because brokers have access to so many different options, they can often obtain a better interest rate. Brokers have access to rates on a wholesale level, so if you think of it in terms of a retail store; going to your bank is like getting a mortgage from Target, while a going to a broker is like a Costco or Sam’s Club.

 When it comes to the processing of the loan paperwork, Brokers definitely have a leg up on banks. Banks have stricter guidelines for qualifying and this bureaucracy can lead to extremely long processing times. In fact, we just closed a loan for someone who was waiting over 4 month for their bank to process their loan and in the end the bank wasn't even able to get the deal closed! At Northern States Mortgage, not only did we get them qualified, but we closed their loan in less than 30 days! Brokers are able to develop professional and personal relationships with the representatives of lending institutions allowing them to reduce the processing time of the application and get things rushed when needed.

 Another huge difference between your local bank loan officer and a mortgage broker is licensing requirements. Any loan officer who works for a mortgage broker has to pass very strict Federal and State Licensing requirements. Each individual loan officer must complete 20 hours of education and pass a rigorous exam. In fact, only 68% of candidates sitting for the test pass on their first try. Even after they pass the test, they must complete an additional 8 hours of continuing education each year. In addition to the education and exam requirements, each loan officer must pass a criminal background check, a personal credit check and a tax certification check. Loan officers working for a bank are only required to register their names and fingerprints with the National Mortgage Licensing System…and that’s it!

But perhaps the biggest advantage of the broker over your bank is that they know the business! Mortgage Brokers live, eat and sleep Real Estate and Finance. They follow trends and stay up to date on ever changing lending laws and guidelines, making them the best choice to save you time, effort and money!

CALL OUR OFFICE TODAY at 1-800-898-9688 AND FIND OUT WHY WE CAN BEAT YOUR LOCAL BANK!!! or visit us online at www.PreMortgagePgh.com

 

Residential Refinance and Purchase Money Mortgages
Licensed by the PA Department of Banking License #20780, NMLS #100397
David Zierski NMLS#116145  Frank Caracciolo NMLS#116143