For individuals, applying for a mortgage usually means shopping around at different banks. Your local branch is usually the go-to place for a loan but when shopping for a large loan like a mortgage it’s beneficial to visit various financial institutions and shop for the best deal possible. Visiting different institutions can be overwhelming and if you’re not familiar with the financial market or mortgage loans it could be difficult to ascertain what your best option is. A mortgage broker can help you make these decisions and find the best decision to suit your situation.
Why deal with a mortgage broker?
- Mortgage brokers are autonomous from financial institutions. Their job is to find a mortgage loan at the best rate possible and to suit your needs as best as they can. They are in the business of finding you the best rates in the market. Because they have access to all kinds of different lenders with different rates they can find you the most competitive one on the market.
- Mortgage brokers work for the borrower (shopper or individual) versus financial advisors who work for the lender. Mortgage brokers represent the customers and not the financial institutions. This means there are no limits in what kind of deals they can find for you.
- Mortgage brokers are experienced in all of the financial services offered by lenders. They have the knowledge in the area to know what could best work for you. When you provide them with all the information they need like your credit score information, down payment and income and assets information they will be able to analyze the rate and payment options that will best suit you.
- Another big benefit of choosing a mortgage broker is that they will only pull your credit score once to analyze many different lending rates. When you shop around at different financial institutions your credit score will be pulled several times and can cause you to lose points off your credit score.
- Mortgage brokers can get great rates and deals on loans because they deal with financial institutions in volume. This means they can get pricing discounts when they purchase mortgage loans in bulk from financial institutions. They also have access to mortgage promotions that banks advertise only to mortgage brokers.
- Mortgage brokers’ services are free. Overall, it’s easier for everyone involved when borrowers take out mortgages through brokers. It’s cheaper for lenders to pay mortgage brokers versus using their own people. It saves them on operating costs and other expenditures. Also, it’s easier for borrowers because brokers do the work for them and are able to secure competitive rates.
- You can use a mortgage broker to try and get a better deal in the bank you are hoping to secure a mortgage from. Their expertise and knowledge in the field will help you better negotiate with the financial institution. It is very likely that you will be able to secure a better deal with a mortgage broker by your side at a bank than you would have alone.