Financing is the biggest stumbling block for many hopeful real estate investors. Suppose you have decent credit and just enough cash for a down payment on a property, but the loan officer delays getting back to you. You know you technically qualify for a loan, but what do you know about dealing with lenders?
The red tape and hidden fees of lending institutions can whittle away your precious time and energy, frustrating your investment plans. For many investors, using a mortgage broker vs. bank makes all the difference in getting the loan you need for your real estate ventures.
A mortgage broker is a middleman between you and the bank—but keep in mind your broker works for you the borrower—not the bank. Some brokers will charge you fees, but you can find brokers who make their commissions directly through the lender.
A good mortgage broker is dedicated to helping you get the best bargain on a loan in the timeliest manner. Taking the time to find a reliable broker can mean the difference between giving up on financing and making your dream of buying and flipping properties happen.
Preserve Your Time and Energy
A mortgage broker can save you countless trips and phone calls back and forth with the lender. The time you spend on processing your loan will be minimal. Meet with your broker at your convenience and then let him or her go to work shopping loans.
The best brokers help you with everything from assessing your loan needs to preparing loan documents, even finessing your application to speed up the process with lenders. You can spend more time focusing on your property investment.
Gain Access to Multiple Banks and Lenders
Having just one bank or lender means limited loan options for you. A mortgage broker is connected with multiple lenders and loan types—which means a higher chance of finding lower interest rates and better terms for you.
Banks would rather negotiate discount loans with brokers than process risky loans with consumers who have less than ‘A’ profiles. Bank lenders profit more by paying a quick commission to your mortgage broker than by paying a fulltime salary to their loan officer to push and package your loan. The broker-lender relationship means savings for you.
Benefit from Your Mortgage Broker’s Inside Knowledge
Unless you have stellar credit and steady cash flow, your loan application can quickly end up at the bottom of a busy banker’s pile. Experienced brokers know which lenders will close loans like yours on time and whether they have the best interest rates and terms. They are personally connected in the industry to negotiate favorable deals with lenders.
Find Your Personal Mortgage Broker for Long Term Business
An honest broker with close ties to lenders is an asset to you. While there are plenty of dishonest brokers looking for desperate homebuyers to upcharge, there are good ones who you will want to do repeat business with as you build your real estate investment flipping business. To find your best mortgage broker, network and ask for referrals.
If loan financing is in the way of your next investment, consult with a mortgage broker to plan your options. A reputable and experienced professional can be instrumental in moving you toward successful real estate investing.
QUICK TIPS
- The time and energy you save alone could be worth your using a mortgage broker.
- Find a broker who makes commission from the lender instead of charging you.
- A mortgage broker works for the borrower and not the bank.
- Using a mortgage broker gives you access to multiple lenders instead of just one bank’s products.
- Find a broker you trust through referrals and networking.
- A reliable mortgage broker will be an asset to your real estate investing business for years to come.
