Using a mortgage broker is one of the simplest parts of the home buying process. If you don’t know about the role that mortgage brokers play in the process of getting a mortgage, you could be leaving thousands of dollars on the table.
Here are 7 reasons why you should use a mortgage broker:
Lower Rates
The most obvious reason that people choose to obtain a mortgage through a mortgage broker is that brokers have access to multiple rates and lenders Mortgage brokers have access to rates that may not always be advertised and can be significantly lower than those advertised by banks or credit unions.
Accessibility
Many lenders rates and mortgages can only be accessed through a mortgage broker. Brokers can negotiate on behalf of the buyer and experienced brokers have relationships with these lends. Ignoring these lenders and choosing to get a mortgage directly with a bank can mean choosing harsher prepayment penalties for breaking your mortgage as well as a higher interest rate, which can cost buyers thousands of dollars over the life of their mortgage.
Customization
A mortgage broker is able to tailor a mortgage product to your specific needs. Mortgage brokers have access to more lends, they’re better able to find a lender and a mortgage based on your specific needs and financial situation.
Your Ally
A mortgage broker is on your side. Their job is to bring it all together in one place and simplify the whole process, making it easier for you.
Free to You
Mortgage brokers operate on commission and are paid by the lenders. Brokers depend on referrals in order to get business, so it’s in their best interest to serve you as best as they can. When interviewing a mortgage broker, ask about their fee structure and how they’re compensated.
Experience
Mortgage brokers have seen many different clients in varying financial situations. By thinking and planning how your life may change over your mortgage term, they’ll be able to provide you with options and scenarios that had never crossed your mind and account for them, Potentially saving you thousands in the process over the life of your mortgage.
Convenience
A mortgage broker can walk you through all of the mortgage options available. You can take as much time as you need to ask questions and have the opportunity to develop a real relationship with your broker. Many brokers are available after hours and beyond 9-5 office hours and they will answer phone calls, emails, and text messages.
