When it comes time to buy a new house, one of the most important decisions to make is whether to hire a mortgage broker or not. There are advantages and disadvantages to both. A mortgage broker is a professional who helps you obtain the best deal on a home loan. He can also assist in sifting through various mortgage options, identifying the best interest rates or overcoming other unique borrowing obstacles.
While you can usually shop for a loan on your own, mortgage brokers serve as a third-party matchmaker to secure the best deal for you. That’s because lenders don’t want to lose money on the deal. So they often work out special “assignment periods” where a borrower has to restrict his search to lenders offering the lowest interest rates. In addition, lenders often offer more attractive terms to mortgage brokers than they would to individual homeowners.
However, not all brokers are created equally. If you have a stellar credit score and have a steady source of income, there’s no reason why you shouldn’t be able to secure the loan amount you need. But sometimes lenders place restrictions on the types of loans they will provide to those with bad credit. In such instances, it might be more advantageous to hire a broker, as he can secure you the loan amount you need based on your personal circumstances.
A mortgage broker has one more advantage over your typical loan officer. He knows where to go when you need help. In many instances, he already has a good relationship with a particular lender. As such, he’ll know which lender will offer you the best loan amount, at the best interest rate or the one with the fastest processing time. So if your mortgage broker contacts a particular lender and gets no response or interest from that lender, he’ll know another lender is out there with an ideal offer.
Brokers also know which lender to approach for a refinance or modification, since most of them deal with several of them on a daily basis. This means they know the current market trends and how lending institutions make their money. Mortgage brokers can also connect you to the right person, whether you’re looking for a new mortgage or just want information about your current one. And since most mortgage brokers work independently, you have the added advantage of having someone trustworthy working directly for you.
Mortgage brokers can save you time. The fees they charge are generally very reasonable, especially compared to the time it takes you to apply, research lenders and get pre-approved. And most importantly, you don’t have to spend weeks sorting through offers and filling out paperwork. You simply give the mortgage broker’s information about you, your income and other critical information and they go shopping for the best possible deal for you. When you Hire a Mortgage Broker, you are not only securing the home you have worked so hard to obtain, you are also saving yourself a lot of time and money. As soon as you move into your new home, all you have to do is sign the paperwork.