Many individuals who are in the market for a mortgage loan will go directly to the bank that they are used to doing business with, or at best will take the time to shop around at two or three different banks in order to try and find the best deal. While there is obviously nothing wrong with this practice, better deals on mortgage rates and terms can often be found through the use of a mortgage broker instead of dealing with banks or other mortgage lenders directly. Using a mortgage broker can help you to find a wider range of loan offers without having to do nearly as much work, and may even be able to find you loan options that you were previously unaware of or may not have even been able to apply for on your own.

But what is a mortgage broker? In simple terms, the broker is not a lender. He or she may work for a company that has a bank-sounding name, but they really serve as independent sales people representing a variety of banks and financial institutions who will ultimately make the loan and service the payments. The mortgage broker does not represent any one financial institution; therefore they act as your representative when shopping for a home loan. Mortgage brokers work solely on commission and they do not get paid anything if the loan does not close. It is in their best interest to get you approved and to secure terms that are beneficial and affordable to you. In contrast, your local bank can only make loans strictly according to the terms of what their institution is currently offering. Bank loan officers are typically compensated by a combination of salary and commission.

There are a number of advantages to using a mortgage broker instead of applying for your loan through a local bank. The most obvious of these advantages is the fact that the broker already has contacts with a number of different banks and mortgage lenders, letting you take advantage of this to receive competing loan quotes without having to seek out each one individually. Many mortgage brokers will even be able to bring you loan offers from banks and other lenders outside of your local area, giving you loan options that you might not have had access to otherwise.

In addition to simply having a larger number of loan options, you may also be able to receive deals on your mortgage loan that you simply would not be able to get if you were not using a mortgage broker. Many mortgage brokers will be able to use the relationships that they have built with lenders over the years to negotiate better rates and mortgage loan terms than an individual would be able to find on their own, helping you to save money both on interest rates and other costs that may be associated with your mortgage. Your local bank simply may not be able to match the interest rates and loan terms that a mortgage broker can offer.

Another advantage of using a mortgage broker instead of applying for a mortgage loan at a local bank is the fact that many mortgage brokers are able to arrange a variety of different payment options. While local banks may have specific payment options that they use, your mortgage broker may be able to find a loan that fits your specific payment needs. With almost any lender you can make payments using automatic withdrawal, by making deposits into a specified account, by sending in a check or money order each month, or other payment options that your broker can specify for you.

Should you later need to refinance your mortgage loan, using a mortgage broker can be a major asset here as well. They will be able to compare interest rates and loan terms for you easily, helping you to find the best deal available on your mortgage refinance so that you can adjust your mortgage as needed. Your refinanced loan may be with the same bank or mortgage lender that the broker connected you with when the original mortgage loan was taken out, or they may be able to find you a better deal elsewhere without you having to do all of the legwork of checking all of the lenders that the broker has access to.

If you do decide to use a mortgage broker instead of a local bank, keep in mind that you should take a little bit of time to compare different mortgage brokers in your area so that you will be able to get the best deal possible on your mortgage loan. Speak with several brokers and find out the average interest rates that they might be able to get for you, comparing them just as you would different banks if you were shopping for your mortgage without the broker. This will help you to find the mortgage broker that has the right connections to get you a great deal on your mortgage loan, and will also help you to make sure that you have fully explored your options.

One of the best ways to increase profits on as many properties as possible is to use a creative real estate investing system with strategies like assignments, subject to, foreclosures, and lease options in conjunction with one another. Once you learn each of the individual strategies, you can begin to apply them in conjunction with one another. This will help you avoid a lot of the pitfalls and scam tactics along the way. You will also have a lot more flexibility while limiting your risk substantially when you do this. Below are few examples of strategy combinations you can use in any market, whether up, down or flat.

“Subject To” and Lease Options

You can gain control of a property using a subject to arrangement, then lease option the property for higher rents, more cash flow and a higher purchase price. (When someone is leasing to purchase instead of just renting it is typical that they will pay more for rent and have a higher purchase price then an outright buyer)

“Subject To” and Foreclosures

When you find an owner in preforeclosure, you can gain control of the property using a subject to arrangement, then bring the loan current by selling, renting, lease optioning, or assigning the property to another buyer or investor.

Foreclosures and Lease Options

When you get a property in foreclosure (and maybe you even negotiated an additional discount using a short sale) you can then lease option the property for higher rents, more cash flow and a higher purchase price.

Lease Options and Assignments

You can gain control of a property using a lease option as a buyer, then assign that right to another buyer or investor.

Foreclosures and Assignments

You can tie up a property in foreclosure by getting it under contract at a lower purchase price (and even negotiate an additional discount with a short sale) then assign that right to purchase the property to another buyer or investor for a fee.

Other Combination Strategies

You can use a number of different strategies in conjunction with one another. For example, you may find a property that needs a lot of work, then rehab the property and lease option it for a higher purchase price and rents. The same principle can also apply to single family homes by doing lease options instead of traditional rentals. These are some additional ways to increase profits, cash flow and long term growth.

If you are buying and holding properties make sure you’re in a market that supports it. You will not want to hold properties that are losing value because of a market decline (unless you’re getting enough monthly cash flow to justify it). This is why faster, lower risk, strategies as described above are better to use for flat and down markets.

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