The Benefits of Using a Mortgage Broker
The Benefits of using a Mortgage Broker
Trying to find the best mortgage for your needs, your circumstances, and your budget can be a difficult and often frustrating task. The wide selection of mortgage products available today means that consumers can enjoy incredible choice, and this choice increases the chances of getting a great value loan. However, the downside is that you could end up spending hours and hours trawling through the mortgage deals from various companies, and while you are busy trying to interpret the financial jargon that many lenders may throw at you, another buyer could snatch the house of your dreams from under your nose.
The other downside to going it alone when looking for a suitable mortgage is the time that it can take. With the pace of life as it is today, many of us barely have time to sit down and enjoy a little quality time as it is. Spending hours glued to the computer or ringing around various lenders is something that most of us can well do without. If you go directly from lender to lender to get your mortgage, you will end up having to complete a new application for each lender, which can waste a great deal of time. Additional time will be taken up with browsing and comparing all the different deals with each lender, and then comparing the lenders against one another.
Using a mortgage broker is an effective way of getting a mortgage package to suit your needs without having to commit hours of your time to searching and browsing. When you use a mortgage broker service, you will simply be cutting out all of the time and work involved in finding a mortgage to suit your circumstances – and it won’t cost you a cent to do it. A good mortgage broker service will be able to source a wide range of mortgage deals on your behalf, and will then put forward the ones that offer the best value in terms of interest rates and monthly repayments. All you have to do is complete one simple application form, which saves you the hassle of having to complete a form for each lender in which you are interested.
An established mortgage broker will already have formed links, contacts, and relationships with a wide range of mortgage lenders. He or she will therefore know which lenders may cater for your particular needs. For instance, if you have a poor credit rating and you are looking for an affordable mortgage, the broker will most likely know which lenders offer affordable finance to those with a tarnished credit history and can therefore approach the right lenders straight away. If you were looking for a bad credit mortgage without the help of a broker, you could end up going through one application after another with a range of unsuitable lenders, and you could end up with a long line of refusals, which could make your credit rating even worse.
Using a mortgage broker is a great way to get a good value, affordable mortgage that is tailored to meet your needs and circumstances. It is also an excellent solution to getting a good mortgage deal without having to put in the hard work and time that you would have to without the assistance of a professional broker.
Depending on the type of home loan you are seeking, you could save yourself thousands of dollars by shopping various lenders for your home mortgage needs. Therefore it is imperative that you know the difference between a mortgage broker and a bank lender. The main differences among the two are that mortgage broker's act as a liaison between the home buyer and the bank lender. Whereas banks derive the loan from their employer.
Below are the Top 10 reasons why you should use a mortgage broker instead of a bank:
1. First of all Mortgage brokers specialize in home loans and are commission based, so it is in their best interest to get you the best rate possible, or they don't get paid.
2. They have an exceptionally large network of lenders that they work with to get you the most favourable mortgage rates and terms. Put it this way, the more lenders you have competing for your home loan, the more you save.
3. Mortgage brokers are able to work one-on-one with each individual client, evaluate their specific needs and find a lender that suits them personally. Next, the broker submits the request to one or more lenders and when the request is accepted the broker works closely with the lender until the home loan closes.
4. They can often times find a lender who accepts home loans that the bank foregoes. Mortgage brokers are also able to discuss a lower interest rate from lenders in trade for bringing in business.
5. All-in-all mortgage brokers save you the groundwork of finding the best mortgage rate and terms for your specific needs.
6. Banks on the other hand deal with all types of loans and may not have the specialization in home loans that a mortgage broker has.
7. Bank loan officers process mortgage loans originated by only their employer.
8. Loan officers at a bank are often limited to certain home loan products, guiding principles and criteria that they must follow. This can a lot of times limit the home loans available.
9. Regardless if you choose to have your home loan with that particular loan officer or not, they are still getting paid a salary. With this in mind they may not be looking out for the best interest of you.
10. Banks do not have a network of lenders that they work with. Every home loan application the bank receives is from one lending institution.
If you are ready to finally purchase your dream home, look to a mortgage professional to help you comparison shop.
I deal with over 100 lenders and these lenders want to compete for your business. One application + one credit report = time saves and assures you the best rate available!
Oh, and I am not a banker so I don’t keep banker’s hours. Feel free to call me days, evening and weekends.