Borrowers often ask why they should use our services when they can apply directly with a lender. Don’t we pay more if we go through your company? Mortgage brokers deal directly with the wholesale division of various regional and national lenders.

Years ago, mortgage brokers did not have access to wholesale markets, unlike traditional bankers. Today, mortgage brokers are more competitive because of their access to wholesale capital markets and pricing discounts. A mortgage broker has lower overhead costs compared to large and expensive banking operations because of their small structure. Larger companies are less competitive since they provide their sales representatives fixed rate sheets. The loan officer oftentimes cannot reduce their company’s profit margin and is oftentimes higher than the marketplace. Thus, mortgage brokers have gained between 65-70% of the marketplace.

The main advantage of a utilizing a broker is that we can shop among hundreds of competing lenders on a daily basis. Lenders price loans based on supply and demand. Some weeks, lenders might have fantastic rates, only to raise them shortly thereafter to slow down the volume. It happens all the time.

So lenders are constantly “in and out of the game” depending on market dynamics. In addition, lenders are constantly changing their guidelines to offer more innovative and streamlined loan structures and products. Dealing with only one lender may limit your ability to qualify; cost you time, and get you a higher rate than you should be paying.

It is our job to assess your particular situation, recommend a particular product or loan structure and then find you the very best rate available in the marketplace.

 

In Georgia, the closing attorney is negotiated as part of the Purchase and Sales Agreement. In the standard form used by the Georgia Association of Realtors, paragraph 3 on page 1 of the agreement provides for a blank to make this selection.

 

Most people are not aware that they can choose the attorney they work with, nor do they understand the vast difference that can exist in the fees that various attorneys charge. For example, the closing attorney will typically issue the title insurance policies for both the lender and the owner. These fees are negotiable and can vary dramatically from attorney to attorney.

 
In addition, the fees they charge for their services and the various “junk fees” can add up to large differences as well. Here at Family Mortgage, we have negotiated special fees with our preferred attorney that will most likely save you hundreds, if not thousands of dollars. Remind your realtor to consult with you prior to submitting any offer so you do not fall into the trap of going with “just anyone.”
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