All mortgage brokers have access to roughly the same wholesale rates. The company determines the desired profit margin for each loan, typically ranging from 2.5% to 2.75% of the loan amount. They add it to the loan price, either as an origination fee on the front end, a yield spread premium on the back end, or a combination of both.
I earn roughly half of what other loan officers charge, saving my borrower clients thousands of dollars upfront and potentially tens of thousands over the life of their loan. You still have to pay the typical closing costs as you would with any other lender (processing, appraisal, title fees, etc.), but I don’t bury them in the interest rate and try to deceive you. We start with the lowest interest rate for which you qualify and structure your loan according to your individual needs and qualifications. Low on cash? You can agree to a higher interest rate, and the lender will cover your closing costs. Do you want the most cost-effective option over the long term? Pay your closing costs in cash at closing to get the lowest possible rate. It’s up to you.

I work with a very limited number of home buyers in the Dallas-Fort Worth area. Please visit https://HelpUBuyAmerica.com to learn more about Exclusive Buyer’s Agency and my services. If I’m unable to represent you, I’ll be happy to help you find a buyer-friendly agent in your area.

Note: I am not in the business of “stealing” clients from other agents. If you’re already working with another agent, I won’t be able to represent you. If you need a “sanity” check about something going on with your transaction, consider me a resource for advice and guidance. However, it would be unethical for me to interfere with your relationship with your agent.

There are several reasons why brokers are better. The most obvious reason is that mortgage brokers have access to dozens of wholesale lenders and can offer much lower rates and fees than retail lenders, saving you thousands of dollars over the life of the loan. By contrast, retail lenders offer only a limited number of loans, and their pricing is fixed. 

Here are some other reasons why brokers are better than bankers:

1. Brokers are required to disclose their compensation, and bankers are not. This means bank consumers are often in the dark about what percentage of their money is going toward the house and what percentage is going into their banker’s pockets. 
2. Brokers are compensated in two ways: by the borrower or by the lender through whom they send the loan. Regardless of the source, each broker charges their borrowers the same percentage. When the lender compensates a broker, and the chosen rate includes a rebate, the broker is obligated to pass on those savings to the borrower by applying them to the closing costs. In contrast, a banker typically keeps that potential savings as additional revenue. 
3. Brokers have compensation caps. QM rules prohibit brokers from making more than 3% on a loan. Bankers often earn substantially more than 3% on loans and are not subject to such regulations. Higher compensations for bankers mean higher rates for consumers. 
4. Sometimes, broker compensation—even if a lender credit offsets other costs—is included in the APR. Conversely, lender compensation is never included in the APR unless it is generated with fees. This creates scenarios where the consumer’s bottom line is better with a broker, even if the broker’s APR is higher than that of a mortgage banker. In other words, the banker’s APR is artificially low because they do not have the same duty to disclose as brokers.

While brokers and bankers seemingly serve the same role, the truth isn’t as straightforward. 

I wrote the first edition of my book for home buyers in 2013. In it, I describe the newly mandated Know Before You Owe or TRID rules and discuss the best way to shop for a mortgage. As a longtime and outspoken critic of predatory lending and real estate fraud, I was delighted to see new procedures designed to help homebuyers avoid becoming victims of mortgage fraud.

Much to my dismay and annoyance, the rules put in place to protect buyers were being skirted. The advice I gave buyers described how things should work, but usually didn’t. After a decade of trying (and failing) to learn the behind-the-scenes happenings of mortgage banks and brokers, I earned my mortgage license to see how things work firsthand. My biggest takeaway? Just as hiring a realtor requires a considerable leap of faith and a great deal of trust, choosing a loan officer does as well. The systems designed to level the playing field for the borrower are ineffective; trust is paramount.

Now, armed with my mortgage license, I am dedicated to providing borrowers with the same level of duty and care that I give to my home buyer clients. My commitment is unwavering, and I strive to deliver the best possible mortgage experience. 

• Exclusive Buyer’s Broker & Owner of HelpUBuy America
• 30 years of experience working with home buyers
• Mortgage Loan Officer with Innovative Mortgage, dba HelpUBuy Mortgage
• B.S., Texas A&M University, College Station
• Graduate, Sheffield School of Interior Design, NYC
• Zillow Contributing Writer & 5-Star Agent
• Best-selling author of four (4) books for home buyers