Why Use a Mortgage Broker?

I am frequently asked what the advantage a consumer has when working with a mortgage broker rather than a bank. While this question can lead to a lengthy discussion, I will summarize my response to three points:

1.) Personal service
2.) Wide assortment of products and rates
3.) Loan packages not available from banks

Personal Service

As e-commerce continues to grow mortgages have become a commodity in the eyes of some consumers. While rate and closing costs are important, so is the experience of closing on your home. As a mortgage broker, I have access to the best rates and products available (see below). Moreover, at KLM Mortgage Group, we work as a team and strive to provide the best possible experience to out customers. When I meet with a new client, I get to know them. I ask what their financial goals are, what the most important aspect of the transaction is for them, and how I can best help them move forward with their purchase or refinance. With every new client, I consider the first meeting the beginning of a long term relationship, and make it clear that I am going to be available to answer questions or help out any way I can whether it be tomorrow of in a few years.

Products and Rates

Because I do not work directly for any one lender, I have the ability to find the best rate available on the product my client needs. We have worked hard to develop relationships with national lenders. Depending on my clients’ credit scores and lending needs, I will be able to utilize one of a handful of lenders to accomplish their goals. For clients with perfect credit or a few blemishes, I have the ability to match my client with a lender which specializes in borrowers just like them. Thus, I can be a specialist in many types of loan products.

Loan Packages

Many savvy consumers ask me about PMI, or Private Mortgage Insurance. PMI is insurance which protects the lender in case a borrow defaults on a mortgage. The cost of PMI is the responsibility of the borrower, is not tax deductible, and does not protect the borrower! Because Fanny Mae and Freddie Mac require PMI on loans which exceed 80% of the value of the property, most banks will offer mortgages to consumers who have less than 20% down payment, but the consumer is stuck paying PMI for years and years. There is a better option! For people with good credit, a mortgage broker has the ability to use one or more lender, and use two loans to obtain the best of both worlds—less than 20% down, and no PMI. For example, a first mortgage for 80% of the purchase price may be supplemented by a second mortgage of 10% of the purchase price. The borrower brings in 10% down payment, and has no PMI! When the interest on the second mortgage is tax deductible and the overall monthly payment is less than a single 90% loan with PMI, the borrower wins!

My goal is to make sure all of my clients gets the best loan available, and understand the loan product I can provide. A smooth transaction with all expectations met is my goal with each and every client! Call today for your free mortgage consultation, 414.453.7620.