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- Banks don’t have to disclose the yield-spread premium fees. | Mortgage Brokers are required to report all cost and not hide cost like banks do.
- Banks hire inexperienced employees that work 9am-5pm and don’t answer phones off the clock. Often the bank employees don’t have any immediate answers and the front-end loan rep does not establish any professional rapport. They are only there to take in our loan application | Mortgage Brokers are well versed with each loan file and know the borrowers qualification’s thoroughly and can provide answers instantly to the borrower.
- Banks interest rates are typically 1/10th to1% higher when escrow closes. | Mortgage Brokers can negotiate their fee and often offer no cost appraisals.
- Banks are untrustworthy. Everyone knows banks charge excessive checking/saving account fees | Mortgage brokers do not commingle with any of borrowers personal financial accounts. Almost every major bank has had multiple multi-million dollar class action laws suits for fraud and cheating people by excessively over charging with miscellaneous, and unnecessary bank fees.
- Banks only take borrowers with exceptional credit fico scores from 720 and above and often require Full documented loan qualifications and lowered debt to income ratios. | Mortgage can do Qualified Mortgages with favorable A paper pricing and can also go as low as 450 Fico scores and stated loan programs as well. They also can provide higher debt to income ratios.
- Banks have limited loan programs. They only have one small portfolio of loan programs. Mortgage brokers have extensive, ” thousands” of direct and private lender portfolio programs too choose from. That means more flexible loan options for the borrower/buyer and often-competitive loan rates and cost.
- Banks have extensive loan cost | Mortgage brokers reduce loan cost.
- Banks are often limited to Qualified Mortgages. Mortgage brokers do Qualified Mortgages and Non Qualified Mortgages. Borrowers with less then good credit are left out in the cold by banks, where as Mortgage brokers can qualify a borrower with slightly less then good credit and even bad credit at times.
- Banks don’t have access to private moneylenders | Mortgage Brokers Do.
- Bank loan officers do not build a good team relationship with the borrower/buyer. Mortgage Brokers build life long relationships team relationships with buyers and realtors.
- Banks often have high loan denial rates. Mortgage Brokers rarely deny loans as they can submit loan packages to direct and private lenders that will close the loans, regardless of fallout.
- Since Banks have limited array of loan programs, banks typically have limited set debt to income (DTI) ratios and are not flexible in providing a selection of DTI ratios to qualify buyers. If a buyer does not have sufficient income or excessive debts a mortgage broker has virtually 1000s of loan programs with varying debt to income ratios that can exceed the standard DTI limits, therefore offering flexibility to buyers in qualifying for a loan via their income and debt brackets.
- If a Bank denies a loan. The borrower has no option but to go to a mortgage broker, however by then the borrowers credit score is often affected negatively, Although mortgage brokers can work to resolve credit report fico issues whereas banks are unwilling to go that extra step. Mortgage brokers save time and money.
Mortgage Brokers Versus Banks.. What Banks refuse to do..
