If you are out looking for a new mortgage or want to renew your existing mortgage, there are certain things you should be aware of when visiting the banks. If you are one of those people who think they can negotiate the best mortgage rates by playing one bank off of another, you are only fooling yourself. Let me explain to you how the banks actually work. You will get a much better deal if you are working with someone who does a lot of business directly with a particular bank or mortgage company. They have what is called leverage, which most individuals dont have. Good mortgage brokers will great contacts with a number of lending institutions.

It is through these contacts that mortgage brokers will be able to find the product offering the best rates for you and your family. You will have to supply your mortgage broker with all your financial information once. When trying to negotiate mortgage rates with different banks, you have to supply them all with your information. So whats the big deal. The big deal is that a mortgage broker runs your credit report only once. You want to limit the number of times your credit report is looked at because each time it is accessed, you rating goes down and down is not good. When dealing with multiple banks, they will each run your credit report thus impacting your credit worthiness rating.

This may not sound important, but believe me it is. You want as few people as possible accessing your credit period. When working with a mortgage broker, you are not a faceless, nameless client. Often, you will be able to create a relationship with them long term. Mortgage brokers have access to hundreds of mortgage products and will often be able to get you up to a 1% better rate than you would have been able to negotiate with your own bank. The banks on the other hand often cycle through loan officers as they get promoted every few years. The long term relationship you have with your mortgage broker will provide options and products in the future you may need. So if you are shopping for a new mortgage, contact a mortgage broker first to see what they can do for you.