Purchasing a home is the largest expense you will have in your lifetime, and the odds are very high you will have to apply for a mortgage to finance the purchase. While there are many mortgage providers on the market, not all banks, loan officers and the products or programs they provide are equal. You have to make sure you pick the best one so that you are getting a great deal and can easily repay the loan. This is where a mortgage broker can help. A mortgage broker helps you secure the very best mortgage deal according to your budget that the open market of banks and mortgage companies are offering. A bank can only present the best deal they have to offer and they are limited in mortgage products and programs and have additional requirements and restrictions that many products on the open market do not have.
You might feel you can obtain the loan on your own and save yourself the money you would have to pay the mortgage broker. You already have to deal with the additional costs associated with buying a home, which include moving and other miscellaneous cost. Plus, not using a mortgage broker would mean no middleman. And, you can use the internet to brush up on mortgage hunting skills. But, there is more to mortgage brokers than just that. A mortgage broker is no more of a middle man than the loan consultant you are working with at the bank. The difference is that the loan consultant at the bank works for the bank and the mortgage broker works for you. They both has access to the decision makers. Also the mortgage broker is paid by the bank just like the loan consultant is paid by the bank. There is no difference between the two. All lenders are compensated through the interest rate or the borrower can pay points directly to the bank or mortgage broker for a lower rate. There are a number of perks of using a mortgage broker. Please consider the list below:
- Mortgage brokers are liable, by law, to provide you the best mortgage advice. This is because a duty of care is mandated in their job. They not only have to give suggestions and recommendations but also provide solid reasons why they are recommending a particular mortgage deal. You can use your best judgment to decide whether or not to go with their advice. In case a mortgage deal doesn’t work out, you have legal recourse. In other words, mortgage brokers know they have to offer the best possible level of service (Investing, 2012).
- There is more to finding a mortgage than just comparing rates. You have to go through a mountain of paperwork, not all of which is in plain English. Mortgage brokers are qualified and experienced enough to make the process simpler and easier for you. You do not have to read the fine print if you find a reliable broker. Not to mention, your broker will do the necessary legwork to find you the best deal, which means great convenience for you in finding the right mortgage deal (Investing, 2012).
- Lenders can be biased (for obvious reasons) when providing mortgage advice. At the end of the day, they want to secure you as a customer. In fact, you might be convinced to go for the first mortgage deal you find because the lender talked you into it. On the flipside, a mortgage broker bats for your team. It is you and your broker vs. the lender. With a reliable broker on your side, you can rest assured, no lender will be able to connive and lure you into a deal which is not the most favorable one for you. The optimal option is to have your mortgage broker as your lender, because your mortgage broker works directly for you. There is easy communication and understanding of your financial situation. You can lend smart with a lending mortgage broker (Homeowner’s Alliance, 2015).
- Mortgage brokers know the market and the mortgage industry inside out. They can provide solid advice based on their experience and insight. In other words, they know things the average Joe and Jane do not and cannot. This is why their advice proves invaluable and well worth the fee they charge in exchange for it. They cannot only help streamline the process but also ensure you find the best deal (Why Use A Mortgage Broker, 2012).
These are some of the major perks of using the services of a mortgage broker. Keep in mind, this is just the tip of the iceberg. There are many other ways in which hiring a mortgage broker will benefit you. The key is to ensure you find a reliable broker who is experienced and qualified. Luckily for you, my services are always available. As a mortgage broker and lender, I explore every avenue to get you into your dream home and live a quality life. The power is now to get started! Please send me an email at email@example.com for an inquiry or advice. I am always happy to lend a hand. Also, I have a show currently airing in the Buyer’s and Seller’s Club that continues this talk on the perks of hiring a mortgage broker. Check it out at https://thepowerisnow.com/buyers-and-sellers-club/ and make your informed decision now, because the power is now!
Eric Lawrence Frazier, MBA
President and CEO