It is an exciting time to look for property to buy. Unfortunately, the dreadful part is arranging financing. Unless you have a rich and generous uncle or a huge bank account, you will have to get the funding in the form of a mortgage.
Fortunately, mortgage brokers are looking for people like you to become clients. They will collect your interest while you pay for your new home. This may seem positive, but there can be stringent qualification criteria and many other requirements you need to meet while working with an unfamiliar mortgage professional who is not in your corner.
What can you do besides approach a bank and get the money you need? The solution is working with a mortgage broker. You may have heard about these professionals, but you are not sure why they exist and how they can help you. You are left with the question. “Why use a mortgage broker instead of a bank?”
They Don’t Sell Products
You may not realize this, but bank mortgage specialists are salespeople. They sell mortgages as long as you qualify for their lending criteria. Mortgage brokers offer financial services, including product comparisons for different lending institutions.
They also offer financial analysis to determine your borrowing picture and negotiate with banks on your behalf. Ultimately, they act as mediators in the transaction between you and the bank.
They Have Close Relationships with Various Lenders
You may have a few accounts, a credit card, and a loan from your local bank. However, getting a mortgage is like being the first customer. Mortgage brokers work with many different banks daily and negotiate lots of mortgages, knowing what leverage they have to help people qualify for mortgages. Because of this, they often negotiate better deals for their clients.
A mortgage broker can shop around for you with different lenders, giving you more choices. They can also help with situations like low down payments and less-than-great credit. Besides the A lenders, most brokers have a network of B lenders that can give you a mortgage. Your broker can still get competitive rates.
They Work For You
While most lending institutions want to give out mortgages, it is still tough to qualify for them. They are not on your side at all. Your mortgage broker is in a different position because they don’t work for banks.
They are self-employed, so their loyalty is to you, their client. They are legally obligated to represent your best interests. This powerful financial professional is in your corner, helping you find the best rates and products to suit your needs.
A mortgage broker will ensure all lending paperwork is in order and guide you through the process. Because they know what each lender requires, they save you time by getting all the proper information from you before approaching lenders.
They Are a Free Service
Given all that they do for their clients, mortgage brokers would be expensive. They make a good living, but it does not come from your wallet, as banks pay them to bring business on board. Why would banks do this?
Brokers are also valuable because they pre-qualify people seeking a mortgage and save time. Once the transaction is done and the mortgage is in place, the lending institution will pay the broker their fee.
They Are Very Flexible
When you want to deal directly with a bank to obtain a mortgage, you need to set an appointment with a specific person and meet with them according to availability. Every follow-up call and appointment become more of a hassle, especially because they work business hours when you are typically working.
A mortgage broker is free from the shackles of a brick-and-mortar operation, so they can meet you almost anywhere, often coming to you. They are also available after business hours and on weekends when you are not working and even communicate through texting, email, and video chat. This makes the whole process much easier and more convenient.
They Have More Expertise
These are why you should use a mortgage broker instead of a bank. When you work with a broker, you get their expertise to act on your behalf, using their influence to get a better deal than if you went directly to the lending institute.
Ultimately, you are still getting your mortgage from one of the central banks, credit unions, online banks or recognized second-tier lenders. You will be happy with a great mortgage and have built a relationship with a trusted financial professional for future purchases.
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