When you shop for a mortgage, you have several options regarding who you can use. There’s your typical bank, such as where you hold your checking or savings account. You can also check out local credit unions, mortgage companies, and even a mortgage broker.
The broker is a company that has relationships with many different lenders. The broker considers your qualifying factors and your situation and matches you up with a lender. There are many advantages of using this service when you shop for a mortgage.
You May Have More Options
As we stated above, mortgage brokers have special relationships with lenders. They know the programs and how they will work with your situation. They may even have ways to get you in with a lender that would be impossible on your own. Brokers know what each lender specializes in and where their weaknesses are, helping you to avoid the ‘bad lenders.’
In fact, brokers often have more options available to them than the standard borrower can get on his own. There are certain lenders that only lend to specific people and if you aren’t a part of that circle, you don’t benefit from their programs. Oftentimes, ‘those people’ are mortgage brokers that the lender trusts and wants to work with, giving you access to more loan programs.
It’s Easy to Compare Your Options
When you shop around with different lenders, it’s easy to get confused. You try to compare the loans, but you might mix up the terms or think of the wrong interest rate. When you have everything laid out in front of you and one loan officer helping you with all of the loans, it’s easier. The loan officer can tell you which loans look to be the most beneficial and which might make not be as good of a deal as you think.
This isn’t to say you can’t do the legwork yourself and then figure out which loan works, but using a mortgage broker can certainly alleviate some of the headaches. The broker generally knows the programs that their lenders offer pretty well too, which can help you have a better understanding of each program and how they affect you.
You Don’t Need Perfect Credit
When you shop with a lender, you are subjected to their rules; there’s no getting around it. When you use a mortgage broker, though, you have access to many more programs. Your bad credit won’t necessarily mean you get turned down. Instead, it will mean, ‘let’s look at another lender.’ You won’t have to fill out another application and deal with an entirely new set of loan officers and loan processors. The broker will work hard until he can find a loan that fits your situation, bad credit and all.
You Have to do Less Work
It can be hard work applying for a new mortgage. If you have to shop around with different lenders, it can be very time consuming. Just filling out the mortgage application itself can be a daunting task when you have to do it repeatedly for different lenders.
Applying with one mortgage broker gives you access to a large number of lenders but with one application and one verification process. Of course, once you and the broker choose a lender, you may have to provide more documentation to get the loan, but this would be the case with any lender. It’s the preliminary step of shopping around that takes so much legwork and time and where a broker can really help.
You Get an Impartial Opinion
It’s no secret that shopping for a home loan can be daunting. If you have someone that can tell you which loan are good and which are bad, it can be a big help. That’s exactly what a broker does. Of course, you’ll want to find a broker that is trustworthy. This means doing your research to make sure you know what you are dealing with when you choose one. When you do get a good broker, though, you should be able to trust his opinion regarding which loans are best for you and which aren’t. As always, make sure the broker isn’t just out for his best interests, but for the greater interest of everyone involved.
A mortgage broker can provide you with many benefits when you are looking for a loan. Do your research and look for the broker that provides you with the best service and has the best reviews. Talk to people you know that have used brokers in the past and see who they recommend. Then you can move forward with finding your loan with someone that you know is reputable.