Getting access to finances is no more a daunting task. Various kinds of lenders offer mortgages. Today, you can obtain loans from banks, credit unions, mortgage bankers, or mortgage brokers. While all others are direct lenders, a mortgage broker is not! However, only a few know this. The lender is the one who provides funds to the borrower at the closing table, whereby the lender obtains a written contract as evidence of the debt and your obligation to commitment and responsibility to repay, along with a legal claim on your asset.
Mortgage brokers never lend; they are independent contractors offering different loan products or deals from several lenders. You can think of them as intermediaries helping borrowers identify the best lender for their situation. If you are unsure about hiring a mortgage broker or sceptical as to what a mortgage broker can do for you, continue reading! This article aims to clarify the benefits you will receive when using the services a mortgage broker provides.
Provides the best financial advice
First-time buyers usually overlook issues like taxes, early renovations, and other maintenance costs leading to over-estimating their budget. If you are a first-timer, you are likely to get stuck with a mortgage or exceed your budget. In that case, brokers act as the best possible financial advisers. They will check your financial condition and provide an honest assessment of what you can afford. They can even help you connect with real estate agents and financial planners to advise you on complex matters.
Offers a great choice of lenders
While you can connect with as many lenders as you want via the internet, choosing the best one can be daunting. So how would you find the right one? Mortgage brokers can be a fantastic source to find the right lender for your needs. A good broker will provide you with a great choice of lenders. However, before entrusting a broker, you need to research and ensure they are not committed to just a handful of favoured lenders.
Helps in pre-qualifying the loan
There is no denying that pre-qualifying for a loan is challenging. Financial institutions are very stringent; even a minor error in your paperwork can lead to the cancellation of your loan application. So if you have no prior experience in applying for loans or even if you have experience, it would be better to hire a broker to take the hassle off your head. Teaming up with a broker can help you find the best form of mortgage and increase the chances of approval.
Negotiates on your behalf
Negotiating with the lenders is another stressful task a broker can help you with. The terms and conditions vary from type of loan to loan and from bank to bank, brokers are knowledgeable professionals with excellent knowledge and market insight, so they can negotiate better terms for a loan than you can get by yourself. Most financial institutions and lenders will sit with you for negotiation on their loans, and if you are a first-timer, you are sure to be crippled by their ploy.
Saves your time and money
Last but not least, with a mortgage broker, you can save a lot of time, energy and money you would have spent applying for a loan and getting it sanctioned. You must fill out a single form with a broker rather than apply with individual lenders. Plus, your broker will accurately portray each loan’s cost differences, advantages and disadvantages. Therefore, you can find the best rates available in the market sitting in your comfort zone.
That’s it! Hopefully, the benefits mentioned above are enough to convince you why hiring a broker for a mortgage is beneficial.