People do a lot of things in preparation for buying a house.
They burnish their credit scores. They save down payments. They get a mortgage broker.
Did you just blink and ask, “What is a mortgage broker?”
If so, then keep reading. We’ll give you a quick overview of mortgage brokers and the benefits of hiring one when you go for a mortgage.
What Is a Mortgage Broker?
A mortgage broker helps lenders and borrowers connect with each other. Brokers don’t actually loan money. They do understand the process, the players, and what things are up for negotiation.
Now that you know what a mortgage broker is, let’s jump into the benefits of using one.
1. Financial Advice
Many first-time homebuyers overestimate how much home they can really afford. They may overlook issues like taxes, early renovations, or maintenance costs.
A mortgage broker can act as a voice of reason for you. They can look over your financial information and give you an honest assessment of what you can realistically afford. They may even connect you with a real estate agent to help you find the right house.
There are many lenders out there offering a wide range of mortgages. A mortgage broker can use your information and eliminate the poor fit loans. Then, they can walk you through the remaining options and explain the pros and cons of each one.
Plus, you don’t fill out multiple applications when you work with a broker. You fill out one application with the broker. They submit the information to all of the lenders.
3. Negotiate on Your Behalf
The best mortgage broker will know the banks involved with lending. They’ll also know the banks sticking points.
The reality is that most banks will negotiate some terms on their loans. Unfortunately, each bank can differ in what things they’ll budge on for mortgage.
The broker can typically negotiate better terms for any given loan than you can get on your own.
4. Monitor the Process
Buying a home takes time. Getting loan approval can take a couple of weeks. Under typical circumstances, a house stays in escrow for a month.
The broker can monitor this process and provide updates when things change. That leaves you free for things like your job and family.
5. Bad Credit
Those with bad credit scores often assume a mortgage will stay out of reach for the indefinite future. While a bad score does make the process more challenging, a good broker can typically find you a workable mortgage.
A Mortgage Broker Simplifies Your Life
The question of what is a mortgage broker mostly takes a backseat to a more important question. What does a mortgage broker do for me? On the list of mortgage broker benefits, the big one is that a broker simplifies your life.
The broker deals with some of the more tedious and time-intensive elements of getting a mortgage. While they do that work, you lead your life.
They also simplify the selection process by narrowing down the options to the ones they think will serve you best. Looking for some advice about home design after you buy one? Check out some of our other articles on this site.