The average consumer calls their bank or Googles top mortgage companies to start begin buying a house or refinancing. The problem with this approach is that largest lenders spend the most money on marketing. Many branch locations and high market spend means higher overhead.
The more money a lender spends on marketing and overhead, the higher their rates and cost. Agave Home Loans is built to extend lower rates and cost while maintaining higher 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 lenders nationwide to ensure lower price and a better 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 product choice with hundreds of different financial institutions. We use a special software featured on publications like Housing Wire, Bloomberg, Ellie Mae, Fannie Mae, and Freddie Mac. This software scans some of the highest quality mortgage lenders in the country to ensure we choose the top lenders. Our experts have no financial incentive around rate and cost. This means their incentive is to put together the best loan that earns your business. The ability for you to get a comparable offer from another lender might require hundreds of exploratory phone calls to different banks.
Mortgage Broker vs Bank
What’s the difference between a mortgage broker vs a bank? 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.
Marshall spent seven years in hospitality and the restaurant industry prior to beginning a career in real estate and lending. After obtaining a finance degree with an emphasis in investments from Northern Arizona University, he began working at Quicken Loans. He spent seven years there as a banker and then Senior Director prior to co-founding Agave Home Loans. (NMLS ID: #1107208)