What if every one of your buyers had an extra $3,000, $5,000, $8,000 or more in their pocket at closing?
What if you could show your buyers an estimated closing statement showing a $4,000 cost to close instead of $8,000?
The truth is that you can have both of these!
On January 10th of 2014, everything that you knew about mortgage lenders changed. That was the date that the Consumer Finance Protection Bureau implemented new regulations which “capped” the fees that a Mortgage Broker can charge you to obtain a home loan. But that “cap” really only affected the Mortgage Brokers, while banks and mortgage bankers were left to charge whatever rate they want to your buyer by simply manipulating their “Service Release Premium”.
If your buyer is applying for a 30-year fixed rate mortgage…and the interest rate was the “exact same” at two different mortgage companies, wouldn’t you want your buyer to get the best deal on their loan?
Why would you want a buyer to pay more than they have to?
Wouldn’t you be able to sell more homes and close more deals if you can reduce your buyer’s cash to close?
Think of it this way! Suppose the loan interest rate will be the exact same if you refer your buyer to a Mortgage Broker or a Mortgage Banker.
The Broker is normally a small organization with low operating costs. In the case of a bank or a large national mortgage company – your buyer’s loan profits need to feed the paychecks of not only the Loan officer, but layers of management and large operational expenses.
Do yourself and your buyers a favor and shop their loan with a Mortgage Broker. They’ll be happy you did – and you’ll get more closings with more happy buyers.