When you begin shopping around for an ideal lender to finance your dream of home ownership, you will come across mortgage brokers. Much like their counterparts in the insurance industry or stock market, they act as a link between buyer and seller.
However, why go through them if you can make the purchase directly? Why should you pay anyone a commission to do something you can do yourself? Moreover, then, isn’t there the possibility that they will recommend a lender because of the commission they get from them, even if they don’t offer the best interest rates? It’s certainly possible, but consider the following first before you decide to go it alone.
Hassle-free application
If you have ever gone through the mortgage application process from a traditional lender, you don’t need anyone to remind you how tedious it was. Filling form after form and searching for document after document. A broker can help reduce the time you spend on this process by telling you what is required beforehand and giving guidance.
Industry knowledge
Mortgage brokers ordinarily have years of experience in both the real estate and financial services industries. They will know much more about what’s trending in the area of property purchase and selling than you do as that is their bread and butter.
A fast-talking loan officer from a lender can convince you to take on a product that is a less than optimal choice for your situation. Remember, they are salespeople too. However, in the ideal scenario, a broker will look at the property you want to purchase, look at your financial status and personal data and find you a package that best caters to all these factors. They have access to lenders across the country so they can quickly get you a mortgage product that has lower interest rates and fees while taking into consideration things like your credit rating and level of income.
Customer service
After you close the deal, you may struggle to get an audience with that loan officer if you were dealing with a big bank. The beauty with brokers is that they’re usually small companies, and this allows them to have closer contact with their customers. On the other hand, since they work closely with lenders, they know precisely who in the bank to contact when you need any assistance.
Take time to find out what terms lenders offer directly from them before settling on any mortgage broker.
About the Author
Sandy Malbrue
Hi, I'm Sandy Malbrue and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search for representation or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my 14 years real estate experience to work for you. Be it to gain wide exposure for your home with my marketing plan, negotiate offers or manage the transaction once you've accepted an offer, in a way that will get you the best price and cause the least amount of disruption to you life as possible.
If you are a buyer, allow me put those skills to work for you to help with the pre-approval process, work with you to locate and arrange for you to view homes of interest to you , and negotiate your offer. Once you have an accepted offer, I will help you arrange inspections, I will manage the transaction for you, from helping to arrange for inspections to keeping you up to date on contingency removals and walking you through the process to a new set of keys.
Let's do this!