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San Diego Mortgage Lenders

Nov 7

The pros and pros of mortgage brokers vs. bankers

Are you in search of an agent to help you purchase an apartment or renew the one you already have?

Which one is more suitable for mortgages: brokers or banks?

A mortgage officer at a bank only offers products and services offered by the institution they work for. That's the main distinction. A mortgage broker however is an intermediary that collaborates with a variety of lenders and is compensated by lenders for referring customers. The Financial Services Commission regulates mortgage brokers in San Diego and requires them to be licensed.


While the majority of homeowners still utilize traditional banks for mortgages, their primary goal when using a broker is to secure a good deal or get the lowest rate. Since they have a wide range of lenders, including major banks, trusts, and insurance firms, mortgage brokers are able to obtain better rates.


According to CMHC in 2017, 39% of homeowners rely on brokers to help arrange their mortgage. This was up from 33 percent in the year 2016. Consumers are able to consult an average of 4.5 mortgage experts when searching for a mortgage loan. This includes 2.4 lenders and 2.1 mortgage brokers. A majority of San Diego mortgage brokers' clients are first-time buyers, and he attributes this in part to their lack of respect for the major institutions when compared with their parents.


Here are a few benefits that both banks and brokers can benefit from:



  • It is possible that a client relationship exists between the employees of the bank.

  • While they might not be specialists in mortgages, banks' loan representatives provide broader financial insights and provide information on different financial products.

  • The bank may be able to accelerate approvals by having information about the client's investment, credit history, balances on accounts, and credit card histories.

  • This will give you security being confident that your institution is secure and large enough to withstand financial storms. Federal rules on underwriting are required to be adhered to by banks.


Mortgage brokers


  • Customers can complete one application and do not need to visit several lenders to obtain estimates.

  • They usually get higher rates than central banks.

  • The services and products of various lenders are well-known to mortgage professionals.

  • Banks aren't likely to accept individuals with low credit or self-employed who have difficulty getting a mortgage.

  • It doesn't matter if you're working with an agent for mortgages or a bank, the down payment guidelines are identical. A down payment of 5% is required for homes with less than 500 000. If the home is valued between $500,000 and $999,999, a 5percent down payment is needed. 10% is required for any purchase that is more than $500,000. A down payment of 20% is required when purchasing a property valued at $1 million or greater. Any down payment of less than 20 percent is subject to mortgage loan insurance offered by CMHC.

While the federal government does not control credit unions or small lenders, however, they do have to ensure they meet certain criteria for underwriting. Smaller lenders (or "monolines") which specialize in mortgages, sell their portfolios to larger banks that have tighter control. Buyers of homes have more room to breathe due to the more cold San Diego property market and GTA. Buyers aren't impatient.


Dennis Sakofsky C2 Financial Corp
2001 Peridot Court, Carlsbad, CA 92009
(619) 391-3707!