What A Mortgage Broker Can Do For You
If you need to secure financing for a home, you need to decide if you are going to work directly with a lender or a mortgage broker. If you do not know much about mortgage brokers, it will help to know about some of the unique things that they can do for you.
Access Multiple Lending Products
Any time you work directly with a lender, they are going to sell you on the mortgage products that they sell. If they only offer 15 and 30-year fixed-rate loans, then that is all you are going to hear about. A mortgage broker works with multiple lenders, and a broker can tell you more about any lending product that is available to you. If you're looking for an adjustable-rate mortgage, jumbo loan, or even a fixed-rate mortgage that is not 15 or 30 years, then a mortgage broker can help find it for you.
Provide Personalized Service
A mortgage broker is going to take the time to get to know you and offer you a more personalized service. After all, they are trying to find the right product that fits your needs, and a broker is typically willing to sit down with you and learn about what those needs are. This can lead to more personalized service that makes working with them a fine idea.
Provide Expertise In Lenders
A mortgage broker likely has some sort of relationship with every lender in your area, and they know what it is like working with each of them. They're familiar with which lenders are fast to go through the underwriting process, which ones are slow to get your loan approved, and which ones are very picky about the property and require an additional inspection.
Having this level of expertise in lenders is something you should really appreciate, as you only learn the differences through trial and error. Since buying a home is something that you don't do often, you could simply end up selecting a bad lender and not realize it until it's too late.
Provide Negotiation Skills
The terms of your mortgage can be negotiated, and a mortgage broker is capable of doing that for you. Lenders will treat a broker differently from the home buyer when it comes to negotiating. With a home buyer, the lender knows that the buyer is depending on them to close on the home by a specific date, and how walking away is typically not an option. Meanwhile, a broker has those relationships with other lenders, and can very quickly switch to a different lender if they are not getting the mortgage terms that they want on your behalf.