Why do I need to use a Mortgage Broker, can’t I save money going directly to a Bank?
You will do better working with a mortgage broker. That is the conclusion of a recent study written by Dr. Gregory Elliehausen of the Georgetown University Credit Research Center, who presented his findings to a Federal Reserve Board Conference on April 7, 2005. Dr. Elliehausen’s report stated that on average, the borrowers who use the services of mortgage brokers obtain mortgages that have a lower APR than bank customers. Mortgage brokers do not add any net cost to the lending process, because we perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders, we can shop for the best terms available on any given day. We can focus on the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants who are self-employed, have poor FICO scores, borrowers who do not intend to occupy the property, and borrowers who seek loans with a minimal or no down payment.
