Are you in the process of shopping for a new home? If so, then you may be wondering if you should work with a mortgage broker or a correspondent lender to get a mortgage. While both professionals can help you obtain financing for your new home, there are some clear advantages to working with a correspondent lender that you may not even be aware of.
Let’s take a look at some of the benefits of working with a correspondent lender to get a mortgage so that you can make the best decision for your needs.
Advantages of Working With a Correspondent Lender
A Direct Transaction
When you work with a correspondent lender, you are obtaining a loan directly from that mortgage lender! They fund your loan with their own money. From there, the correspondent lender will then sell your mortgage to an investor via the secondary market in order to make credit available again to help the next borrower. This is how the correspondent lender provides a continuous stream of funding available to qualified buyers.
More Options
The secondary market is a big reason behind how a correspondent lender is able to offer a broader, more diverse array of options based on your homeownership goals. Simply put: They tend to offer you more options! Mortgage brokers typically have access to a limited number of products from different lenders. Correspondent lenders, on the other hand, often offer their own line of products in addition to products from other lenders. This gives you more options to choose from and increases your chances of finding the perfect loan product for your needs.
Control Over The Process
When you’re working with a correspondent lender, you’re dealing directly with the professionals making the final decision about that loan. Mortgage brokers are not in that position. A correspondent lender has more control over the loan process. When you work with a mortgage broker, your loan will typically be transferred to different lenders throughout the process, which can sometimes cause delays and things lost in translation. When you work with a correspondent lender, on the other hand, your loan will stay with that same lender from start to finish. This often leads to a smoother and faster loan process overall.
The Correspondent Lender Advantage
As you can see, there are several compelling advantages to working with a correspondent lender instead of a mortgage broker when shopping for a new home. If you are looking for favorable terms, an easy application process, and more control over your loan, then working with a correspondent lender may be the best option for you.
