Benefits of Using a Mortgage Broker for a Bay Area Home Purchase

When buying a home in the San Francisco Bay Area, you have several options for mortgage financing. You could go to a traditional bank, a mortgage company, or a broker. In this article, we’ll examine some of the benefits and advantages of using a mortgage broker in the Bay Area.

In other words, using a Bay Area mortgage broker allows you to cast your “net” farther and wider. This can help you find the right type of loan for your particular situation.

What Is a Mortgage Broker and What Do They Do?

Basically, a mortgage broker connects borrowers with lenders. Brokers typically have established relationships with many different lenders. This allows them to choose the best product for each individual client.

So you might think of the mortgage broker as a kind of financial matchmaker. In most cases, the broker does not lend money directly to the borrower. Instead, he or she attempts to find a loan that meets the borrower’s needs.

A mortgage broker does not actually work for the lender, but is more of an independent contractor who offers products from multiple lenders (called wholesalers).

You might wonder why a person would choose to work with a Bay Area mortgage broker, instead of going directly to a bank or lender. So let’s talk about that next.

Benefits of Using a Mortgage Broker in the Bay Area

The biggest advantage to using a mortgage broker is that it gives you more options, in terms of home loans. The broker will review your financial situation (credit score, income, debt, etc.) and try to match you with the lender that best meets your needs.

This is the primary benefit of working with a Bay Area mortgage broker, as opposed to going straight to a bank / lender. You’ll have more loan options and programs to choose from, because the “matchmaker” will be able to choose from a pool of lenders — sometimes dozens of them.

Another advantage of using a mortgage broker in the Bay Area is that they often specialize in niche products and programs. For example, a broker might specialize in “jumbo” loans for more expensive properties. These kinds of loans are common in the San Francisco Bay Area, due to our higher home prices.

Some mortgage brokers specialize in government-backed loans, such as the FHA and VA programs. So if you’re looking for a specific type of product, you might consider working with a broker who specializes in that product.

Banks Usually Offer Fewer Options for Borrowers

You could also apply for a home loan directly through a Bay Area bank that offers mortgage financing. But you might be limiting your options with that approach.

First of all, not all Bay Area banks offer mortgage loans. And those that do often only have two or three home loan products to choose from — or a handful, at most.

A bank typically won’t reach out to multiple lenders to find you the best rate, the way a broker would. They’re not able to “shop” through many different products to choose the best mortgage loan for your particular situation.

In other words, they have fewer options to offer you when compared to a Bay Area mortgage broker.

Ready to Take the Next Step With Your Financing?

Bridgepoint Funding is a Bay Area mortgage broker with nearly two decades of experience. We help home buyers and homeowners all across the San Francisco Bay Area, and elsewhere in California.

Our broker-based model allows us to find the right type of mortgage loan for each individual client. This kind of tailored approach can help you achieve your home buying or refinancing goals, while securing a good rate in the process.

Please contact us if you have mortgage-related questions, or if you’d like to apply for a loan.