6 MYTH’s BUSTED! Mortgage Brokers v. Mortgage Bankers

September 3, 2019 by in category Mortgage News tagged as , , with 0 and 0

Recently it has been observed that some people have fallaciously started to believe that mortgage bankers are considerably a better option than good old mortgage brokers when it comes to dealing with estate finance. That is why it has become so indispensable to bust such myths and reveal truth to the people.

Myth No. 1: Mortgage bankers usually show more leniencies as compared to the mortgage brokers, since they lend their own cash.

The belief in this falsehood proves the point that goes like “common sense is a rare sense”. Suppose if an entity is offering is lending its very own money. In this case would it be willing to take less risk or more risk? Definitely less! That is how this myth is obliterated. In addition to this, unlike mortgage bankers, the mortgage brokers do not have to limit their selves with one underwriter’s opinion.

Myth No. 2: It is a lot easier for mortgage banks to get everything done, since they’ve direct access to underwriting.

Mortgage brokers these days are proficiently trained when it comes to getting in touch with the source in order to acquire facts. Moreover, this is the world of technology in which nearly everyone owns a cellphone and underwriters are no exception in this regard. Because of the technology underwriters are accessible to both brokers and banks equally.

Myth No. 3: Better loan pricing or interest rates are offered by mortgage banks.

It is in the power of mortgage brokers to shop loans from a wide range of wholesale banks that too in a matter of several seconds. On loan pricing/interest rates, there could be the pricing disparities which can go as much as 0.25%. To cut the long story short, the ability of mortgage brokers to get loans from large wholesale banks that have much more buying power as compared to individual retailers or mortgage banks.

Myth No.4: Loans are funded by mortgage banks in their own name which is comparatively better for clientele.

Mortgage brokers generally funds the mortgages in those lenders’ names that actually collect the payments.  It practically eradicates all the confusion in giving mortgage payments.

Myth No. 5: Local mortgage banks take care about their customers, while brokers really don’t know you so they don’t care.

It is not so difficult to locate those mortgage brokers who live nearby and have real stakes in your own community. Brokerage companies also have regional associates too who are employed to cover different states. That is why it would be a little unfair to doubt their reliability. After all, mortgage brokers are also professionals who really care about the wellbeing and growth of their invaluable clients.  

Myth No. 6: Mortgage bankers offer portfolio loans, but mortgage brokers can’t.

Those individuals who are looking out for niche loans which are tailored according to your unique needs then it is better to give preference to brokers over bankers. The rationale behind it is that mortgage brokers many exclusive loans which credit unions, mortgage banks and even some wholesale lenders can’t.  

London Mortgage Advice Ltd is authorized and regulated by the Financial Conduct Authority for residential mortgages and non investment insurance business.

Although London Mortgage Advice Ltd is regulated by FCA, commercial mortgages and most buy-to-let and offshore mortgages are not regulated by the FCA.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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