If you don’t already have a broker book, starting one may be a good step to take. Some banks and mortgage lenders don’t work with mortgage brokers, but if they don’t they are missing out on potentially major advantages that are especially important in today’s shaky market. Additional due diligence in real estate is becoming increasingly important — which is where having a good broker book can come in handy for mortgage lenders.
There are many reasons to consider working with a mortgage broker, but we’ve narrowed down the list to the top 6.
1. Brokers present major value.
Mortgage brokers have access to and knowledge of the entire mortgage market. They may have insights you haven’t considered, or could have even known about.
2. Reduced cost of acquisition — mortgage brokers get the business.
When a client approaches a mortgage broker, it’s because they’re in the market for, well, a mortgage. They want to get the best deal possible and trust a broker to find it for them. If a broker recommends your services, that’s less capital you have to spend on your marketing budget and a new client — essentially getting more for less.
3. Mortgage brokers can be your frontline sales team.
Mortgage brokers sell your deals and promote your brand. If you offer a niche service, or lend to people who can’t get a loan through a traditional bank, a mortgage broker can help connect you with your targeted audience. They can recommend your services based on their clients’ needs — and if you do have a specialized service and have a good relationship with the broker, they’ll be confident in recommending your service to their client.
4. Better quality deals.
Mortgage brokers underwrite deals first, so the deals that get to you have passed their due diligence. This is especially important in today’s market, where Canadians’ household debt is higher than ever and mortgage fraud is becoming increasingly common. At worst, having that reassurance on your side will make you feel more secure in lending to your clients and at best it will save you money and hassle in the long run.
5. Smoother closings.
Mortgage brokers know what is needed to drive the closing process. That means way less time that you have to spend on crossing the Ts and dotting the Is when finalizing the deal. You just have to worry about the financing — not the red tape.
6. Higher closing rates.
Because brokers vet your deals, you see more closed deals as they weed out the ones that don’t make sense. By the time a deal gets to you, you can feel assured that it’s a solid one.
Brokers have stepped it up. They now invest in underwriting your deals using tools such as automated valuation models (AVMs) to validate homeownership information, property value, and registered mortgages ensuring that you are only spending your time on good business
Mortgage lenders, want to beef up your broker book but aren’t sure where to start? Check out our list of networking and professional development events where you could create a new connection here.
Purview for Lenders can help you get started on establishing a broker book. Call us today at 1.855.787.8439 or visit www.purviewforlenders.com.