Only a very small percentage of homebuyers pay cash when purchasing a home. In fact, 78% of all homes were purchased with a mortgage last year in the United States. You have some choices when it comes to obtaining a home loan or refinancing a home loan. The obvious choice is to go to the bank and speak with a home loan specialist. Your other choice is to use a mortgage broker.
But what does a mortgage broker do for you, what are the benefits of a mortgage broker and why should you use a mortgage broker when applying for a home loan? Read on to get these answers and more.
Why Use a Mortgage Broker?
Have you found your dream home? Have you done everything you were advised to do: gotten pre-approved, researched the location, had a home inspection, etc.? Now it’s time to obtain a home mortgage. Do you go with the mortgage broker pros or head to your local bank?
Let’s look at the benefits of using a mortgage broker.
1. Saves You Time
A mortgage broker will save you the work of shopping around for the best rate and lender. They have connections. They know and have contact with several lenders. They can steer you away from lenders that have hidden costs and fees in their terms and find you the best deal. They’ll handle the leg work while you attend to other aspects of the home-buying process.
2. Saves You Money
Mortgage brokers know what’s available as far as rates and special programs. They have access to information that is not normally available to the public. In the end, you may end up with a better rate and better terms. Their fees can also be rolled into the interest rate or closing costs so there is no upfront payment necessary. Mortgage brokers have a working relationship with a number of lenders. In these cases, they may be able to get the lender to waive some of the fees, for example, the application fee or origination fee. These fees add up, so this can lead to significant savings.
3. More Than Just a Broker
A mortgage broker can offer extra services like credit repair for those who need a little boost in their credit score. They will also guide you through the whole process from your home loan application to the closing of your loan. The broker will keep you informed of where you are in the process each step of the way.
4. More Flexible
Mortgage brokers can handle all of the details and make sure they work for you. Don’t want to close in thirty days? Do you wonder if all that paperwork is really necessary? Your broker will do what he can to make sure things are done on your terms.