12 May Why Mortgage Brokers are better than mortgage banks?
I have a huge bias; we are a mortgage brokers, but we are not tied into any lender or any bank or any mortgage bank.
We as mortgage brokers don’t have our own mortgage bank.
Most mortgage brokers are bankers
Most mortgage brokers are bankers, which means their allegiance is to their bank.
Bank employees are tied to their banks. It’s a disadvantage for the you as a consumer.
Banks have Limited Mortgage Options
As a mortgage broker this seems as biased opinion but
- They can only offer you what they have to offer.
- The Mortgage broker tied with a bank are trying to narrow in on certain products or certain programs.
These product are those they must sell or the products that they want to move. These are the mortgage products that you will have to choose.
And oftentimes these programs and products offered by them are inflexible to your situation.
For example the interest rates are higher or the process may be more difficult and more challenging.
New Vintage Mortgage brokers lack of allegiance to any entity (bankers).
We just work for you.
This is the key reason why you should choose a mortgage broker over a bank or a mortgage bank. We are on look out for what is good for you.
Mortgage Products at New Vintage Mortgage
As a mortgage broker we believe in the philosophy that we can help you only if we understand the mortgage market.
We should know what’s out there to solve the problems that you might face.
To offer a financing solution that you’re looking for, be it
- lowering your interest rate
- helping you with your retirement plans or your estate plans,
we should understand all the products in the industry.
The simplest way I like to describe it is if all the mortgage products in the United States were on a Bell curve, on one end of the Bell curve, you have your government sponsored loans, you have your VA (Veterans Administration loans) FHA, USDA loans for homes and farms in the US agriculture districts. Those are the government loans.
On one end of that Bell curve, far into the Bell curve, in the middle of the Bell curve are your conventional and conforming mortgages. Conventional mortgages is a typical mortgage that follows typical rules and protocols.
And we all mostly understand those conforming mortgages are those conventional mortgages that conform to Fannie Mae and Freddie Max guidelines. That’s the big bulk of the Bell curve.
And the other side of the curve are construction loans, private money loans, bridge loans, loans that outside of the box of your normal lending parameters. They’re used to solve different problems.
One loan that I would describe in that other side of the Bell curve is a home equity line of credit or HELOC.
It’s not a conventional loan, but it’s a loan that many people have.
Many people take advantage of and it’s just outside of the box of your normal conventional loans.
There’s so much more to talk about when you talk about loan programs and for example, within those conventional loans you have your jumbo loans, and you have conforming loans.
Let’s talk about conforming loans a little bit.
Jumbo loans are outside of the conforming loan limits that Fanny Man, Freddie Mac have established, and a jumbo loan can also have a very interesting characteristics, but they’re still conventional loans.
We’ll talk more later about the jumbo loans and the portfolio lending community and how they can offer so much more in product lines than Fannie Mae and Freddie Mac.
Why Choose New Vintage Mortgage?
Back to mortgage brokering and new vintage mortgage and the advantages of working with us.
We are a small shop. We are very flexible in our dynamics, our pricing.
Even though we’re a small mortgage company, we have dozens and dozens of relationships with lenders so we can offer solutions, more solutions than a bank can offer because we are brokering to any solution that might be out there in the mortgage market.
Hope this article helped you about New Vintage Mortgage products and the advantages of going to a mortgage brokers with your mortgage requirement.