Financing the purchase of a new house is typically done with a mortgage broker. When you are seeking a mortgage, you have one of two options: go directly to the lender or work with a mortgage broker instead. Today’s market is such that mortgage brokers prove invaluable more often than not. They certainly deserve your serious consideration if you are planning to buy a house in the near future.
Whether you call them mortgage brokers or mortgage advisers, don’t think of these dedicated people as being like used car salesman looking to make some quick money by selling you a lemon. In most countries, mortgage brokers are licensed professionals required by law to uphold the highest fiduciary standards. You will get very good service when you choose a reputable mortgage broker.
Brokers Are Also Advisers
The term ‘mortgage broker’ makes it easy to assume that a broker does nothing more than arranging mortgages. But that is actually not the case. In many countries, like here in the UK, mortgage brokers are also financial advisers. If you have found a mortgage broker here, you have found someone who is recognized professionally as a financial adviser with special expertise in the real estate market.
Does this matter? You bet it does. As a financial adviser with specialized knowledge in mortgages, your broker is able to advise you on things that a bank loan officer cannot even touch. Your broker will have in-depth knowledge as to how a particular mortgage will affect your overall financial picture. He or she will be able to advise you on which mortgage is the best for your long-term financial situation.
At the very least, a mortgage broker has every incentive to make sure you are happy. Bear in mind that brokers are paid a commission from the lenders whose mortgages they arrange. They do not get paid if you don’t get a mortgage. So your broker will do everything in his or her power to make sure you get the right mortgage. Your broker wants you to be happy so that you will tell others about your experience.
Brokers Offer More Choices
Another great reason to consider working with a mortgage broker is choice. Think about that for just a minute. You are not likely to buy a house without taking some time to consider all your choices. You may attend a dozen open houses before you buy. Your agent might show you four or five key properties along the way. You want choices, and rightfully so.
So why shouldn’t you have choices when it comes to your mortgage? You should, and that’s exactly what mortgage brokers provide. Unlike bank loan officers, independent brokers are not restricted to just one or two mortgage products. They are free to shop the market based on each client’s individual needs.
Mortgage brokers look at banks, building societies, credit unions, and private lenders. You should know that there are some lenders that offer special mortgage deals only through brokers. In other words, you can only get your hands on one of these deals by going through a broker. A loan officer cannot help you.
Brokers Are Easier to Work With
Finally, it is worth considering using a mortgage broker when you understand that brokers tend to be easier to work with. Yes, there are exceptions to every rule. But by and large, brokers have an incentive to guarantee you have a pleasant experience. Most go out of their way to make that happen.
You will generally find that mortgage brokers don’t limit their schedules to bank hours. A broker is more willing to meet with you in the evening hours after banks are closed. Even weekend appointments are not necessarily off the table. A mortgage broker will generally accommodate your needs and schedule as much as possible.
When it comes time to apply for your mortgage, a broker is there to give you advice and make sure everything is done correctly. Your broker can help you complete the paperwork. He can explain exactly what records you need to compile to submit with your application. Most importantly, a broker will know how to package your mortgage application and supporting documentation in such a way as to present your situation in the best possible light.
These are all things you do not get from a bank loan officer. When you go directly to a lender, they control the relationship. The opposite is true when you are dealing with a mortgage broker. You control your relationship; the broker is there to assist you in whatever way possible.
Are you planning to buy a house in the future? If so, you can go directly to a lender or work with a mortgage broker to secure financing. A mortgage broker is a better option in most cases. Hopefully, this post has given you enough reasons to at least consider using a broker once you are ready to buy.
Fiscal Fizzle 