Traditionally, banks and other lending institutions have distributed their own home loans and mortgage offerings. However as the market has become more competitive, the role of a mortgage broker has grown and become more popular.
So what is a mortgage broker? Basically, it’s a company or individual who acts as an intermediary to source mortgages on behalf of the consumer – in other words, you! At Maple Tree Funding our Loan Officers are the individuals, or ‘mortgage brokers’ who assist you in finding the best home loan for your needs.
Most mortgage brokers are regulated to ensure you are protected. The extent of the regulation varies depending on the area the mortgage is originating in.
For the average person, the home mortgage market can be somewhat daunting and confusing. After all, we purchase several cars during a lifetime, but generally speaking, most of us do not trade in our homes every few years! This unfamiliarity can make the mortgage decision a difficult one.
Some people simply go into their local bank or trust company to finance their new home purchase, or to refinance their existing mortgage. Although convenient, this method only allows you to choose from the mortgage rates, terms and products that particular institution is offering, and these are not always the best rates, terms and products available on the market.
In addition, many lenders use an array of incentives and advertising dollars to ensure we choose their bank over another, further confusing the landscape.
The benefit of a mortgage broker is they work on your behalf. They can guide you through the process of selecting a loan that’s most suitable for your circumstances and offer property-related financial advice. A mortgage broker has the ability to examine loan programs from dozens of banks and lending institutions, many of which are not available to the general public. This way, a broker is able to find you the best rates and programs available, based on your specific financial circumstances.
You could shop around to every local financing institution yourself in order to find the best mortgage, but that can be very time consuming and extremely confusing. Plus, you may not always know the right questions to ask. If you don’t know that there’s a USDA loan option, or that you qualify for an FHA loan, how can you ask about it?
Mortgage brokers also offer fast closings and, because they can shop mortgage options from various lenders that are not available to the general public, they can offer incredibly competitive rates.
If you’re hoping to obtain a competitive home loan that suits your budget and circumstances, and close on your house quickly, a mortgage broker is definitely the way to go! Learn more about the advantages that local, independent mortgage brokers offer to homebuyers here.
The NY Mortgage Brokers at Maple Tree Funding are trained professionals who act as “financial matchmakers” and can assist you every step of the way in this extremely important home buying decision. They use the wealth of knowledge and experience at their disposal to find a mortgage that best suits your needs. If the lowest rate is your priority, our Loan Officers can often arrange mortgages at rates up to 1% lower than the banks posted rates for qualified applicants. Perhaps payment flexibility is what you are looking for. In this case, our Loan Officers would shop the market for the mortgage with the best pre-payment privileges and options.
For borrowers with poor credit records, or other unusual circumstances, finding a lender may be difficult. Our Loan Officers, having specialized knowledge and multiple lending sources, will be a valuable resource in obtaining a mortgage, despite your bad credit.
In an effort to gain a larger market share and reduce fixed salary costs, many financial institutions are paying finder’s fees to the Mortgage Brokers who refer business to them. This allows Maple Tree Funding, in most cases, to provide you with our valuable service at no cost to you. This means, that like your real estate broker, we have a vested interest in getting your financing approved, as we get paid when the deal is closed and the mortgage is funded.
At Maple Tree Funding we think of our clients as our friends, helping them secure the home of their dreams. It is extremely rewarding to our Loan Officers to see one of their clients close on their very first home. We are proud of our customer service and our client satisfaction. It gives us great pleasure to know that our clients return to us for assistance when they choose to refinance or opt to purchase a different home.
Maple Tree does everything the lender would do — checks your credit and work record, arranges for title search and hires the property appraiser — but, once all of this information is compiled, we then select a mortgage lender that will most likely accept your application based on your financial data and personal information.
At Maple Tree Funding, you will not be “a number” as many of the bigger firms treat you. We are available when you need us; we keep you updated on the status of your mortgage, and you deal with a professional friendly Loan Officer not an automated phone service. Word of mouth has been our best advertising from referrals by our previous clients. That is the type of advertising you have to earn, not pay for.
In scanning the mortgage market, both nationally and regionally, Maple Tree knows a lender’s specialty. We can identify what lender might fit a borrower’s special needs, such as the first-time home buyer.
Editors Note: This post was originally published in 2014 but has been updated as of January 2018.