Business owners should start their companies by sincerely asking themselves one very important question: “How can my company give customers the best possible price and service and still be a viable business model?”
Rick Piette, owner of Premier Mortgage Lending, believes that many business owners do ask that.
“Especially small businesses that are locally owned and operated because they’re vested in the community, and they know their customers can literally be their neighbors. For them, they know it’s in their best interests to find a way to make that happen,” he said.
“But when it comes to the mortgage loan business, there is plenty of proof that’s not the norm,” he added. “While that may seem like a broad statement, the fact is, there are few service industries that allow you to so easily compare apples to apples. But mortgage lenders are one of them.”
When Piette opened the doors of Premier Mortgage Lending in 2010, he asked himself how he could make sure his clients were getting the best mortgage loan at the lowest cost. And he found the answer that not only would assure his customers of that but give them proof of it, too. That answer was to operate Premier as a mortgage broker.
For those of a certain age, hearing the term mortgage broker might conjure up unpleasant memories about high loan fees, high interest rates and poor service received from inexperienced loan officers.
“That’s true, mortgage brokers had a horrible reputation back then,” Piette agreed. “However, between the economic collapse and the creation of the Consumer Financial Protection Bureau, the business of mortgage lending was completely turned on its head. Now, mortgage brokers are actually the smarter and more cost-effective choice for borrowers due to new regulations.”
Today, mortgage brokers are restricted on how — and how much — they can earn on a loan, and every penny of that must be disclosed to the borrower. Those rules are not the same for banks and mortgage bankers. They can make far more on a loan at the customer’s expense, and they have no obligation to reveal that information.
“But that’s only one of the differences between the types of mortgage lenders there are to choose from,” Piette explained. “There are others that often borrowers aren’t even aware of, but they can have a huge impact on the mortgage loan they end up with and the amount of money they pay for it.”
For example, a mortgage broker has access to many lenders, each of them servicing a certain type of borrower. Customers fill out one application, and the broker becomes their “personal shopper,” so to speak, searching for the best loan for their customers’ needs. Also, brokers can help those without perfect credit or who might have difficulty qualifying for a mortgage. Because they have access to products, rates and other information from several lenders, they can search for better options for their customers.
“But banks and mortgage banks only offer their own loan programs,” Piette said. “And what do you think the odds are that your bank would ever tell you that another bank had a better home loan rate? They probably wouldn’t, but your broker would. Even worse, there are many situations where a borrower’s bank may not even approve their mortgage at all. All we can say about that is, ouch.
“Mortgage brokers are often small, local businesses, and that makes a difference, too. Compare the service and personal attention you get from working in person with your Premier Mortgage loan officer to the “press 5 for more options” experience with a large bank,” Piette said.
“The truth is, a broker will provide superior customer service, give you the best options and guidance in choosing the right loan and handle your paperwork and details more efficiently. Why? Because we work for you — not for the banks or lenders that sell their own products.
“Our duty is to place our skills, knowledge and expertise at your disposal to ensure the best possible result on your behalf. That’s how Premier Mortgage has done it since Day One. Maybe that’s why our customers return to us again and again for their mortgage loans,” Piette said, smiling.
For more information about the company’s products, visit PremierMortgageLending.com or call 702-485-6600 to schedule an appointment.
Premier Mortgage Lending, NMLS NO. 393282, is at 701 N. Green Valley Parkway, Suite 125 in Henderson.