When it comes to mortgage brokers who are approved to help you with a VA streamline refinance – there are a couple of things that you will want to know. The first one is that VA isn’t the one who lends you the money – actual banks are the lenders – VA only insures your loan against loss in that in the event you default, they will pay the lender and not have the lender write off the entire amount.
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So since the VA doesn’t lend you the money for a VA loan, who does? Mortgage brokers, mortgage banks and large depository banks are the ones that actually lend you the money. One of the three – mortgage brokers – have some distinct advantages and disadvantages to working with when doing a VA streamline refinance. Many times a mortgage broker who helps you with your mortgage will be smaller than a mortgage bank or depository bank – and often times they will just have a small office with just a few people in it.
Regardless of how large or small the mortgage broker is – one thing is certain: if they are advertising for VA loans, then they are a VA approved lender or they will get in serious trouble.
Some interesting statistics about mortgage brokers in the US include:
- During the previous decade and coinciding with a significant bubble in house prices, mortgage lending activity in the U.S. increased from about $5 trillion in 2000 to just over $11 trillion in 2007. By 2004, mortgage brokers { intermediaries that bring borrowers and lenders together { accounted for approximately 50% of residential mortgage originations and had revenues totaling $20 billion in 2006.
- The recent mortgage crisis raised concerns about whether mortgage brokers provide a bene fit to participants in the mortgage market. Theoretically, bene ts to the lender and borrower from using a broker should compensate for the additional costs of the intermediary, but it is often argued that in reality, this is not the case in the mortgage brokerage market, resulting in the vili cation of mortgage brokers in the press.
- Employing a database of loan originations from a former subprime mortgage originator that was one of the largest during the recent real estate boom, we nd in our sample that increased broker competition at the MSA level is associated with lower price for borrowers.
Source: Mortgage Brokers, Origination Fees, and Competition
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Find a VA Approved Mortgage Broker
Finding a mortgage broker or banker can be tough if you don’t know where to look and remember – when you find one, don’t speak with just one about your VA streamline refinance. Each lender will have their own VA streamline refinance rates, guidelines and fees. To get the best deal, be sure to speak with multiple mortgage brokers or bankers who can all give you a written price quote on getting your loan done – along with any concerns about your specific situation. Get started today and submit your information below.
