Should you hire a mortgage broker? The decision is yours definitely, but we can offer you advice. And we’re gonna tell you YES! You should get a broker. A right one. But firstly, who’s a mortgage broker, and what does a mortgage broker do?
Who is and what does a mortgage broker do?
Basically, a mortgage broker works with you to find a mortgage that meets your needs. They are like real estate agents, but for mortgages.
Think about it, when shopping for a home, a real estate agent can remove all of your requirements and then share the properties that best meet your needs. They work as a filter to make sure that the properties presented to you are the ones that would really interest you. If you know you need 3 bedrooms and share this with your realtor, they will not show you Two Bedroom Homes. It would be a waste of their time and theirs.
A mortgage broker does the same.
Basically, they sort through the different types of mortgages out there, regardless of the lender, to find the ones that really work for your particular situation. No more searching in the fine print and jumping from website to website – a mortgage broker can take the hard work of comparing loans and lenders so you can choose from a smaller subset that actually meets your criteria.
For example, let’s say there are some blemishes on your credit record. A mortgage broker who has experience helping people with credit problems obtain a mortgage knows exactly where to look and what mortgages are available for their situation.
Likewise, let’s say you have great credit and you want a quick turnaround so you can snag your dream home before someone else does. Your mortgage broker can tell you which types of loans have the fastest turnaround time so you can get the keys as quickly as possible. They work with you to help you achieve your goals, and if you choose the right mortgage broker, you really are part of a team.
How is a mortgage broker paid?
There are two ways a mortgage broker can be paid. If you are interested in the services of a mortgage broker, be sure to ask about their rate in advance so it doesn’t become a problem later.
Some mortgage lenders are paid by the borrower (that is, you) during the closing process. Your fee is part of the closing costs and can be represented as a percentage of the mortgage. (And depending on your loan, you can request that closing costs be included in your loan. Just ask your mortgage broker or lender.)
The lender pays other mortgage brokers, which means that the institution backing your loan will pay the mortgage broker. In this scenario, any lender you choose from those provided by the mortgage broker will be responsible for covering the mortgage broker’s fees.
Should I Get a Mortgage Broker?
If you are looking to save time and simplify the loan process, a mortgage broker can help. Because you are essentially unloading the work of finding reputable lenders for your particular situation, you can focus on other aspects of the home buying process, such as packing up and preparing to move into your new home.
While the Internet has made it easier to learn about mortgages, it has also made it easier to spread misinformation. You can get to your knees with conflicting information pretty quickly, especially when it comes to finances. Having a professional by your side can help you distinguish the real from the false and get the answers you need to make an informed decision.
If you are looking to avoid the stress of buying, you can get an honest opinion and qualified advice from a mortgage broker. In addition, they will work on your behalf to find the lowest interest rates on loans that best suit your situation. From their experience, they know more about which lenders and types of loans to turn to in particular settings. This can be a boon to first-time homebuyers who find their heads spinning at the mention of a fixed rate or ARM.
By hiring a mortgage broker, you are essentially asking a professional to eliminate all potential mortgages for which you would be eligible to find the best ones, leaving you free to focus your energies on finding the right home.
What to look for in a mortgage broker you’re choosing
Some real estate agents work with a particular mortgage broker. This is a good way to find a person that your real estate agent has recognized. You can ask your realtor for a recommendation. Some companies even have someone in-house so they can better serve their customers. However, you don’t have to use that mortgage broker. You can always find someone else if you want. Ask friends and family for recommendations or find someone in your area online. Or most importantly, find a facilitator to connect you with a dependable mortgage broker. Fincue is one. We are an Australian-based loan facilitator.
When you get a mortgage broker, you have to ascertain they are the right broker for you. Ask about their history as a mortgage broker and if they have worked with clients in your situation before. This can help you understand how they help your clients and the types of results you can expect. You can also ask for references and search for reviews online to see what others have to say about the mortgage broker.
You can get around all these complexities by employing the services of a loan facilitator. We, at Fincue, connect borrowers with loan brokers that are suitable for their circumstances. Speak with us today and be rest assured of getting a mortgage broker that will serve you passionately and ensure you get the best deal from lenders.