Why Use A Mortgage Broker To Secure Your Home Financing?
You essentially have two choices for how you can get a mortgage. You can either go to a local lender to apply directly, or you can use a mortgage broker. If you've never used a mortgage broker before, it helps to know what the differences are between the two options so that you can decide on which is best for you. Here are a few benefits of working with a mortgage broker.
You'll Save Time
When you work with a local lender, you have to go through the entire application process just to work with that single lender. It can take a lot of time to schedule a meeting, sit down and talk with them, disclose your finances, and then wait for the pre-approval to come through. You then have to repeat this entire process for each lender you consider working with, which becomes a tedious part of shopping around for a mortgage.
Working with a mortgage broker means that you will save a lot of time. You have that initial conversation one time with the mortgage broker, and they take your information to different lenders for you. They have access to different lenders that you may not even know about, and are able to help you shop around for a mortgage much faster.
You'll Save Money
Many people assume that a mortgage broker is going to end up costing you more money because they are essentially a middle man in the mortgage process. However, that is not going to be the case when you work with a broker.
While the broker does make money off of finding you a mortgage, know that they are getting more competitive rates from lenders that you may not be able to get on your own. This is because mortgage brokers are incentivized by lenders that they have existing relationships with to bring business to them. Even if the mortgage broker charges a fee for their services, you may easily be able to break even on the fee due to having a lower interest rate.
You'll Have Less Hassle
Dealing with mortgage lenders is not something that is enjoyable to do since there is a lot of communication that needs to happen to ensure that your mortgage goes through. Know that your mortgage broker will handle the majority of the communication with the lender for you. There are likely many other things that you are dealing with when purchasing a home, and it will be nice to have one aspect taken off your plate.
For more information about mortgage brokers, contact a company like Cornerstone Residential Mortgage.