It used to be that if you wanted a mortgage, you had to visit a bank. Now, there are more options than ever with the growing number of mortgage brokers. A mortgage broker is a financial professional who has access to a variety of lenders. They specialize in understanding your financial needs and getting you the best rate on your mortgage.
Here are five reasons why you should use a mortgage broker instead of a bank:
One of the biggest differences between a bank and a mortgage broker is the variety of mortgage options. A bank can only provide you with their own services and products, while a mortgage broker has access to several different lenders and interest rates. Your mortgage broker will be unbiased in their advice for lenders and will focus on getting you a mortgage that fits your financial needs. A mortgage broker is the most useful option because even if you want to secure a loan with a bank, the broker will make sure you get their best rates.
Another great benefit of using a mortgage broker is the cost—usually, you are not responsible for covering any of the broker’s fees. Instead, your broker will receive their commission from the lender of your mortgage. So, for free, you can expect to receive help in all aspects of securing a mortgage loan. The bonus to this is that you know your mortgage broker will do a good job because their payment depends on you signing a mortgage agreement.
Lower Interest Rates
Mortgage brokers have contacts all over the mortgage market and because of this, they can get you top-notch deals that banks can’t access. Mortgage brokers also have access to better rates through their volume discounts. These are discounts that your broker receives from lenders based on the number of mortgages they secure. This benefits you in the form of a discount on the interest rate for your mortgage. And while a bank would want you to accept given rates, your mortgage broker will go above and beyond to negotiate with lenders. They’ll make sure that you get the lowest interest rate for your loan and, in many cases, can reduce fees for important paperwork.
Can Help Those with Poor Credit
A mortgage broker will make sure they understand your credit history and financial needs to find the best lender for your mortgage. Poor credit can often be a barrier to securing a mortgage with a bank. Your mortgage broker will help you find lenders that are willing to overlook poor credit. These kinds of lenders usually charge higher rates than traditional mortgage lenders, so having a mortgage broker will help to make sure you get a fair deal.
Saves You Time
Let’s be honest, you don’t really have the time to research or negotiate with a bunch of different lenders while trying to make sure you get the best rate on your mortgage. As well as their access to lenders, a mortgage broker has the knowledge and experience to get you the lowest rate on your mortgage. After consulting with you, they’ll know which lenders to approach and can get in contact with them faster than you would on your own. Mortgage brokers are also more flexible than banks when it comes to availability. Many brokers are willing to meet after business hours and handle business via phone or email. This reduces the time you would spend traveling to meetings, so you can focus on other priorities.
If you’re looking to get the best possible deal on your mortgage loan, you should enlist the help of a mortgage broker. Unlike a bank, your mortgage broker will provide you with unbiased advice on your loan options and match you with a lender that can meet your financial needs. This is especially beneficial to those with poor credit or unstable income. Mortgage brokers are cheaper and more accessible than banks, which will save you valuable time and money when securing your mortgage.