The average consumer calls their current bank or googles top mortgage companies to start the process of buying a house or refinancing. The problem with this approach is that the largest lenders spend the most money on online ads and running branch locations nationwide that both create huge overhead expenses. The more money a lender spends on marketing and overhead, the higher their rates and cost. Agave Home Loans is built to extend the lowest possible rate and cost (if any) while maintaining the highest levels of service and communication. We do this with an obsession over client first. We believe that if we deliver on price and service, our business will grow organically through word of mouth. Our special software searches over 52 financial institutions across the country to ensure we’re providing you the best price and experience in every scenario. You work with us the whole way through.
Why Trust the Expertise and Price of Agave Home Loans?
Agave Home Loans is a company built around the expertise of it’s highly trained loan officers. A loan officer can have over 10,000 combinations of rate and product choices with hundreds of different financial institutions at their disposal. We use a special software featured on publications like Housing Wire, Bloomberg, Ellie Mae, Fannie Mae, and Freddie Mac that scans all of the best and largest mortgage lenders in the country to ensure that YOU are obtaining the best mortgage rate and product for your scenario. Our experts have no financial incentive on the rate and cost of your loan which incentivizes the offering of best possible terms. The ability for you to get a comparable offer from another lender would require hundreds of exploratory phone calls to hundreds of different banks.
Bank versus Broker
What’s the difference between a bank versus a broker? A bank often means a direct lender. You are communicating with an employee from the actual company lending you the money. A broker is communicating on your behalf to many lenders to ensure you get the best deal. A common response a bank might say is that a broker adds a person to the transaction which adds unnecessary cost, you might as well cut them out and go direct to the source, but there are several factors on why this isn’t true.
- A broker can shop your loan around, which forces competition from lenders. If you call one bank that you’ve worked with for 20 years, the odds of them offering better terms than 20 banks competing for your business is slim.
- Banks and direct lenders are spending a ton of money in marketing to drive you to their site or their phone lines. That marketing cost raises the amount of money the bank needs to charge in order to stay profitable. A broker is generating their own business through their own marketing spend. Therefore, the lender can offer better terms through their broker channels than they can directly to the borrower.
- Lastly, bankers or lenders might say that a broker doesn’t have direct communication with the lender and that someone working directly for the employer will be able to better coordinate the loan transaction. Brokers have direct access to several contacts including account managers, account executives, and the underwriters on their files. This allows the broker to get help quickly and ensures the loan process runs smoothly. Lenders are even more likely to work well with brokers being that a rocky process and poor communication from the lender could cause brokers to take their business elsewhere.
Should I Refinance my House?
Whether you should refinance your house is situational. There’s no simple yes or no answer. The simple answer is that you should ALWAYS know your options. The current market is allowing many homeowner’s the opportunity to lower their payment significantly. Higher home values can allow you to pay off debt, renovate your home, or pay for large expenses like weddings or college. Mortgage holders wanting to pay their house off faster might benefit from shorter terms. Speak with an Agave expert and decide what’s best for you and your family.