Comparing NJ Mortgage Consultants with Direct Lenders

While most people are of the opinion that direct lenders in the state and NJ mortgage consultants are all the same, this is not the case. There are huge differences between the two, although they both work to achieve the same goal: offer mortgage loans to would-be homeowners in the state. It can also be safely said here that using the services offered by a NJ mortgage consultant is more beneficial than going to a direct lender. The article here briefly cites the difference between the two; however, we highlight the key difference here. While mortgage consultants keep multiple sources of acquiring funds for offering loans to borrowers, direct lenders only rely on one source – their own funds. Therefore, in cases where a borrower is searching for a particular NJ home mortgage plan that is not available with the lender, the borrower must go elsewhere. This is certainly not the case with NJ mortgage consultants, and can be considered as the first benefit that these consultants have over brokers.

NJ Mortgage Consultants and Direct Lenders – the Differences

• Another very important factor that requires great consideration is the price incurred in availing the loan. Usually, direct lenders offer commission of sorts. This is done to connect a borrower in the state to the lender directly. Commonly, this commission is also termed as yield spread. For playing this role, the mortgage brokers are given wholesale rates by the lenders. Interestingly, this rate always stands at a lower value than the existing retail rate which is offered by direct lenders.
• Consumer service is another equally important factor that always puts a customer at ease, and NJ mortgage lenders are experts at this. Almost everyone in search of a mortgage in the state for the purpose of purchasing a new house or refinancing their existing mortgage is on the lookout for the lowest interest rates and fees. Mortgage lenders can do that for you in a shorter span of time, because they are always in contact with multiple banks, and are thus well informed about the latest NJ loan programs and current rate of interest. NJ mortgage lenders do indeed offer a one-stop shop for all your mortgage loan needs.

In view of these differences, it can be concluded that while NJ mortgage consultants can get you virtually any loan plan in the state that you want, direct lenders are only fixed to what his or her firm offers. In the simplest terms, mortgage consultants represent the borrowers, and not the loan program itself.

Myth: Using an NJ Mortgage Consultant Can Be Expensive

For people who are unaware of the fact, services of NJ mortgage consultants are also the same as that of direct lenders, in terms of costs incurred. This is also a major reason why more than 85% of the loans offered in the state as well as in the country originate from mortgage brokers, not from direct lenders.