Why Use a Mortgage Broker?
5 Benefits of Working With a Mortgage Broker to Secure Your Mortgage Product
We all love good deals. However, few people want a good deal on their mortgage loans. At least that’s what statistics show: more than 50 percent of home buyers don’t shop around for better mortgage deals.
More people research potential vacation destinations and vehicles than mortgage loan options. Most of them simply rely on the bank they are currently using or default to some of the biggest names in the industry. This approach could cost you thousands of dollars.
And it’s not only about saving money. In addition to the interest rates, there are many other things to consider when taking out a mortgage.
A mortgage is a long-term commitment, financing probably the most significant purchase in your life. So it’s essential not only to shop around but also to be well-informed and well-versed in all things mortgage. Instead of going through the pain of doing everything alone, you can hire a mortgage broker to do the heavy lifting.
Here are the most important benefits of using a mortgage broker for your mortgage shopping.
1. You’ll get access to a plethora of lenders
Mortgage brokers can access an extensive array of lenders, such as banks, credit unions, and private lenders. This can be especially important for individuals struggling to get approved for a mortgage or find a mortgage with good terms. A mortgage broker knows its lenders in and out and can find you options you haven’t even thought about.
With so many contacts in their lender networks, mortgage brokers can provide you with a diverse selection of mortgage choices customized to your individual requirements and needs. Thus, working with a mortgage broker actually increases your chances of securing the most competitive rates and terms available in the market.
2. You’ll save a lot of time and effort
Searching for a mortgage deal can be pretty time-consuming with all the different options available on the market. Mortgage brokers will do the most challenging part of finding you the best mortgage deal - reaching out to lenders, requesting offers and handpicking the best options for you according to your financial goals. They have a streamlined process for inquiring about mortgage deals for their clients, making this process smooth and fast.
Additionally, a mortgage broker also handles all the paperwork involved in taking out a mortgage.
3. You’ll make the most informed decision
Mortgage brokers do not only provide you with different mortgage options. With their vast experience and knowledge, they’ll work closely with you to explain all the options available and what would be the best possible solution given your situation.
They’ll also explain in detail every deal offered and their pros and cons, so, in the end, you can rest assured you’ve truly made the most informed decision you can.
4. You can get customized solutions and a personalized service
A Mortgage broker's ultimate goal is to find the best mortgage product for your financial situation and objectives. A well-versed broker will assess your situation first and then try to devise viable mortgage solutions.
Besides, using their long-standing relationship with lenders, they can even negotiate a tailor-made solution for you and access niche or specialized products. Oftentimes, mortgage brokers will also have access to exclusive deals and promotions from specific lenders, giving you even more choices for your mortgage needs.
5. You’ll get all the support you need - even after signing on the dotted line
Yes, a mortgage broker will explain the different products available and secure a deal for you. But a mortgage broker’s job doesn’t end there.
Even after your mortgage has been secured, your mortgage broker stays at your disposal to answer any questions or address any concerns you might have. Your mortgage broker can also help you down the line in case you need to renew your mortgage, take out a second mortgage or refinance.
How Do I Choose My Mortgage Broker?
Just like you’ll take the time to choose your real estate agent, you should also take the time to choose the right mortgage broker. Experience isn’t everything. You are about to look for financing for the most significant purchase of your life, and you want this to be handled by someone you can trust and believe in.
Your first step should be to ask your friends, family or colleagues if they have a mortgage broker to recommend. Someone’s positive experience and recommendation are the best measurement of whether or not you can rely on a broker.
You can also ask your real estate agent or lawyer whether or not they have someone they work with. Oftentimes, agents and lawyers have several mortgage brokers with whom they regularly work. While your friends and family may be happy about how someone handled their business, agents and lawyers can give you a more professional recommendation as they work within the same industry.
And in the end, you can turn to Google or Facebook to research mortgage brokers in your area. Look for someone with many positive reviews to ensure many people had a positive experience working with them. Don’t get discouraged if you find a few negative experiences in the reviews. Mortgage brokers are humans just like everyone else. They work with many people, and not everyone may like how their business was handled. It’s important that the vast majority of reviews have been positive.
And in the end, don’t hesitate to interview several mortgage brokers to see with whom you seem to click the best. You’ll be communicating intensively with your mortgage broker while trying to secure a mortgage, so it’s crucial that you choose someone whom you genuinely like working with.
Conclusion
While many individuals like to take matters into their own hands and shop for a mortgage alone, if you want to save a lot of time and effort understanding the different options available, it’s best you use a mortgage broker.
Especially if you are unfamiliar with all things mortgage, the expert advice, knowledge and experience offered by a mortgage broker can genuinely help you make the most informed decision and secure the best possible deal available on the market.