When you are ready to refinance your home loan or buy a new home then you must decide if you are going to use a Michigan Mortgage Broker or a bank that offers mortgage financing. While both options may have mortgage professionals, it is important that you understand the differences between the two options.
There are many benefits to using a Michigan Mortgage Broker for your home loan. Mortgage brokers in Michigan are all licensed by the National Mortgage Licensing System (NMLS) and the state of Michigan. To be a licensed Mortgage Broker you must have taken hours and hours of classes and training and have passed extensive exams to prove your knowledge. In addition to training, they must have at least 3 years of experience directly in the Mortgage Business. A bank loan officer is able to do loans on their first day with no training, licensing or classes. Who would you rather take advice from for your largest investment?
Yes - Mortgage brokers in Michigan do the same loans as a bank. These days most mortgages are going to fall into a few categories; FHA mortgage loans, conventional loans and other government programs such as VA loans for Veterans and USDA Rural Housing loans for home owners in rural areas.
FHA mortgages are exactly the same terms from a mortgage broker vs bank loan; the only difference is the interest rates and fees offered and of course if you are able to get your home loan approved. Most banks are very strict on their underwriting guidelines whereas a loan broker may have options for Bad Credit Mortgages with lower interest rates and lower financing fees.
No. Mortgage Brokers do not cost more for home loans. While we cannot speak for all mortgage brokers, Riverbank Finance LLC does not charge their clients fees for most mortgage programs. That's right, you pay zero fees for our services. With lender paid compensation we get paid only by the bank or lender that we fund your loan though. This means that we add no extra costs or fees for our clients and can help save you money.
Banks love loans from mortgage brokers and are glad to compensate us for our work because we also save them money. They do not need to pay mortgage brokers benefits, overtime or expenses for the loan process such as credit report fees, office space and utility bills. This is why they offer mortgage broker wholesale or discounted mortgage rates to offer to our clients. It is win win for everyone using a mortgage broker.
For more information on the difference between a mortgage broker and mortgage lender visit the CFPB website.
If you are looking to purchase a home or refinance a home loan that you already have, it may be in your best interest to speak with a Grand Rapids Mortgage Broker like Riverbank Finance first so you can review loan options at multiple banks and make sure you are getting the best mortgage for you and your family. Call Riverbank Finance today at 1-800-555-2098 or request information below.