December 9, 2019
Orion’s brokers know their own value proposition. But sometimes it makes sense to remind our clients of it. Acquiring a home loan is fraught with information, documentation, and plenty of decisions. Consumers understand that banks and credit unions offer mortgage loans. But how many know what a broker mortgage offers? Orion would like to remind you of some advantages of working with a mortgage broker that will help you talk to clients.
As our clients know, a mortgage broker role is the middleman between borrowers and lenders. Part of a mortgage broker’s job is to “do the math” and let a borrower know the loan amount they qualify for to be approved for in a mortgage. A broker is responsible for originating the loan and placing the loan with Orion who would fund the transaction at the closing table.
A bank loan officer can only offer mortgage products available at their own bank. Orion knows that we have competitors, and brokers maintain a large network of wholesale lenders. Rather than being limited to the offerings of just one lender, a mortgage broker can help a client find a lender that meets certain needs and financial requirements, such as a preference for a lower down payment or the best interest rate possible. (Orion offers both, and more!)
Working with a broker should not impact the loan amount. Mortgage brokers are paid in either one of two main ways: upfront at closing by the borrower, or after the transaction closes by the lender. The broker’s fee is a small percentage of the loan amount, usually between 1-2 percent. Federal laws require that mortgage brokers are licensed and cannot have their salary linked to the interest rate your client receives from a lender.
Your clients come to you through various channels. Your clients have probably asked for referrals from real estate agents, friends, family, and neighbors. Orion’s brokers often report that clients check their licensing with the state professional licensing authority, read online reviews, and check them out with the Better Business Bureau.
Your clients will often ask for references, usually the names and contact information for the most recent two or three customers who closed loans with you. They then call and ask what the previous client’s experience was like, and if they would do business with the broker again. Also, clients often choose a broker who has been in the industry for at least three years (but preferably more). They want to know that the broker has experience with specific loan types they might be interested in such as FHA or VA loans, for example. (Some clients will check to see if a broker holds the proper licensing to be a mortgage broker in a certain state through the Nationwide Mortgage Licensing System and Registry.)
Brokers offer a great value for the money, and your Orion AE is there to assist!