Mortgage brokers get the best mortgage rates through two key advantages over banks and direct lenders: bulk pricing and competitive shopping. With a broker, you have access to both — plus the benefit of having an experienced professional in your corner to guide you through the process and help you avoid costly mistakes.
At Diversified Lending of Colorado, we've been helping Colorado Springs homebuyers and veterans get better rates than they'd find walking into a bank — since 2005. Here's exactly how it works.
Reduced Mortgage Rates Through Bulk Pricing
Mortgage brokers are the wholesale clubs of the home lending world. When you have a membership at a wholesale club like Costco or Sam's Club, that club can offer you better pricing than a typical retail store — because they do business in bulk. Lending institutions work the same way with brokers.
Lenders know that a mortgage broker will send them multiple loans over time, so they offer loans to brokers at a reduced wholesale rate. Brokers pass that savings directly to you. If you walked into a bank and applied for a mortgage on your own, they would quote you a retail rate. With a broker, you get the wholesale rate — often meaningfully lower.
Key Points
- Brokers receive wholesale pricing unavailable to individual borrowers
- The volume of loans a broker sends a lender translates directly to your rate
- Even a 0.25% rate reduction saves thousands over the life of a 30-year loan
Expert Competitive Shopping on Your Behalf
When you work with a mortgage broker, you automatically gain the advantage of competitive shopping — without doing any of the legwork yourself. Your broker works with a variety of lenders to ensure you're getting the best offer available for your specific financial profile.
When you shop rates on your own, you take on all the responsibility and hassle of the broker role — without the experience. You may not know the right questions to ask or the pitfalls to avoid. Worse, allowing too many lenders to pull your credit in a short period can actually lower your score and reduce your chances of getting a good rate.
Key Points
- Your broker compares multiple lenders simultaneously — you get the best offer, not just the first one
- Brokers manage document flow, deadlines, and lender communication on your behalf
- A single broker credit inquiry is treated differently than multiple individual lender pulls
Choosing the Right Broker Matters
Not all mortgage brokers are created equal. The barriers to entry in the field can be low depending on the state, so it's important to make sure the broker you work with is the right choice. The difference to your loan — and your entire lending experience — can be tremendous.
Buying a home isn't like buying a gallon of milk. Picking the right broker can help you immensely, and picking the wrong one can be a costly mistake. Make sure you're comfortable with the qualifications, experience, and approach of the broker you choose.
Key Points
- Verify your broker's NMLS license number — Jerry Volk is NMLS# 272661, Lisa Walters is NMLS# 2777159
- Ask how many lenders they work with and how they select the best fit for your scenario
- Look for a broker who educates you, not just one who processes your paperwork
At Diversified Lending, we pride ourselves on making sure every client feels educated and informed. We want to earn your business today — but more importantly, we want your experience to be great enough that you return for future loans and refer your friends and family. That's the standard we hold ourselves to on every single file.
No Obligation
See What Wholesale Rates Look Like for You
Jerry personally reviews every file and responds within 1 business day. No call centers, no runaround — just honest guidance from a Colorado Springs mortgage broker who's been doing this since 2005.