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A: Why use a Connecticut Mortgage Broker?
Connecticut Mortgage brokers.
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Using a CT Mortgage Broker vs a Local Bank
CT Mortgage Lending
Who will earn your business?
Here are the top ten questions to ask CT mortgage providers before even considering their CT mortgage rate quotes:
Are you a lender or a broker?
If a CT mortgage provider is a lender (typically a bank), they will fund your Connecticut home loan out of their own funds. If they are a CT mortgage broker (like we are at Acorn Home Mortgage) they are a middleman between you and the lender. Brokers have relationships with multiple lenders from whom to search for CT mortgage rates and products.
At Acorn Home Mortgage we offer you many advantages over going directly to a bank. We work with over thirty lenders today and they fall broadly into two categories, CT mortgage banks and institutional or portfolio lenders. CT mortgage banks form the majority and they will only enter into a CT mortgage obligation (agree to lend you money for a home) if they already know that they will be able to sell that into the secondary investment market. They will have what they call ‘warehousing lines of credit’ which give them the liquidity (the short term money) to be able to lend to you quickly in time for your closing. They will then turn around and sell that Connecticut home loan, bundled with others, to investors in that secondary market. This is where Fannie Mae and Freddie Mac come into the picture. The other group of lenders, the portfolio lenders, are like the banks of yesterday, where they will keep the CT mortgage in their own ‘portfolio’ of investments. They may be linked to pension trusts and other forms of investment trusts so they have good reason to want to invest in your Connecticut home loan and use your monthly interest payments to directly fund their own investors. The investors will clearly be looking for stable monthly income from their savings.
The advantage to you of working with Acorn Home Mortgage, is that we can identify the right lender(s) for your particular circumstance. Many of our lenders do not work directly with borrowers but prefer to use Acorn Home Mortgage as a partner to identify potential borrowers in whom they would have an interest. Because these portfolio lenders don’t want to sell your Connecticut home loan in a secondary market, they can be more flexible in their minimum requirements to agree to a Connecticut home loan. These lenders are able to exercise the more usually characteristics of bankers in understanding their borrowers and granting exceptions based on proven mitigating circumstances.
Our more conforming CT mortgage banks, selling your Connecticut home loan into the secondary market, tend to have their own direct marketing arms as well and partnering with us as an additional source of potential borrowers. From a CT mortgage bank’s
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