When it comes to making a major purchase, having options is a good thing. Having options means you can compare prices and select what is more affordable for you. Who wouldn’t want that?
Instead of going straight to your bank and applying for and obtaining a mortgage, working with an independent mortgage broker is often the more financially beneficial choice. The banks will offer you one interest rate and one set of mortgage terms, while a mortgage broker can offer you multiple rates and terms from multiple lenders. This allows you to find the best rate and terms to suit your needs specifically.
Working with a broker isn’t just good for your wallet! Below are six additional benefits to using a mortgage broker:
1. Service When You Need it
Unlike banks who strictly work “banker’s hours,” traditionally 9 a.m. to 5 p.m., mortgage brokers are much more flexible and are often willing to accommodate your availability, even if that means the weekend. This can make all the difference for those who have full-time jobs and/or children at home, and who can’t afford to work on the lender’s schedule.
2. Brokers do the Research
Since brokers work independently from mortgage banks and lenders, they are able to shop around for the best rates and products for your specific needs. This can save you a ton of time and money, as most lenders are limited to their product offerings. Most brokers also have systems in place for making sure you are involved and informed every step of the way.
Many borrowers/homebuyers do not understand the industry jargon and this can cause confusion during the mortgage application process. That’s where the mortgage broker comes in. Independent mortgage brokers have been through extensive training and understand the mortgage process from both sides, lender and borrower. The mortgage broker can outline the details behind every rate and offering from the lenders, breaking it down so that you can understand your investment and feel comfortable making your decision.
4. Easy loan comparisons
An independent mortgage broker will take the time to understand your personal circumstances and mortgage goals so they can match you with the best lender. They have access to a large portfolio of banks and lenders to effectively compare and contrast rates. Instead of meeting with several banks and lenders on separate occasions, you can meet with one mortgage broker, one time, and have access to all of the same information.
Some consumers are unaware that, for every time your application is denied, it negatively affects your credit history. Mortgage brokers have access to the latest loan records and information from several lenders, which they can match to your application to determine the likeliness of approval. This ultimately reduces the chance of leaving a mark on your credit history.
Brokers rely on commissions from the lenders for bringing the business to them. Therefore, it does not cost the borrower any additional expense for all of the benefits of a mortgage broker.