Imagine that you have just submitted a loan application a week ago with one of the large lenders. Let’s assume that you have forgotten to give the loan officer a key piece of information that can really help with your approval. Call their 800 number and try to find the right person to give this to so that the underwriter can consider it when approving your loan. This should answer the question, "Why do I need good service." Another misconception a lot of people have is that you actually pay more using a broker because they are the infamous "middle man."

This couldn’t be farther from the truth, in fact, most brokers can offer lower pricing than larger banks nine out of ten times. This is because, much like manufacturers, money has a retail cost and a wholesale cost, and only state licensed mortgage brokers can get the wholesale pricing. Banks have to charge retail for their money because of the added expense it takes to close mortgages. They have to pay loan officers, processors, underwriters and many more expenditures that are involved with closing a loan. Simply put, their overhead is much higher than most brokers. Lower overhead means brokers can offer lower pricing to you.