Maybe you are planning on buying your first home and you require a mortgage. The thought of getting a mortgage can be quite overwhelming to many people. Although some people go to banks to assist them to get a mortgage, some prefer a mortgage broker instead. Whether you are purchasing a house or remortgaging, you will be faced with a wide choice of mortgages. You will need to figure out whether to opt for a fixed rate deal, an offset mortgage or a variable rate deal.
This is where the services offered by a mortgage broker come into play. Mortgage brokers are there to advise you regarding the mortgage size you will most likely get taking into account your salary, and they will also offer you advice on the best mortgage for you. There are several advantages associated with the services offered by a mortgage broker and some of them are discussed below.
A mortgage broker is there to represent you, not the bank. Loan officers at banks on the other hand, work for that particular bank only. The bank pays them through a salary or commissions. What that means is that they can only suggest their own financial products to clients. This is whether or not those products are suitable for you or not; for the purposes of making a sale. But, you don’t have to be limited to a single set of products from one bank when a mortgage broker deals with hundreds of various lenders. Because they work with many different lenders, the financial product that you ultimately get will be the best-priced possible. In addition, brokers are paid a commission by the lender, not you.
Another benefit of hiring a mortgage broker is that he will assist you to save time. The broker is the one who will handle all the paperwork, as well negotiate with the lenders. Also, it is their job to assist their clients to get preapproved for a mortgage. In future, since they are financial experts, they can also assist you with anything to do with your financing.
Lower Interest Rates
If you want to get the best deal on a mortgage, the best way to go about it is to shop around and negotiate; precisely what a broker will do for you. It has been shown that buyers who make use of the services offered by a broker tend to pay lower rates. The reason for this is that these financial experts have a good relationship with a lot of lenders. As such, they are in a good position to negotiate lower rates.
You Can Secure a Mortgage with Bad Credit
It will be difficult for you to get a mortgage from a bank if you have bad credit, have a low income, have declared bankruptcy or if you are self-employed. A mortgage broker on the other hand can assist you to get a mortgage in the event that a lender turns you down. The reason for this is that they work with a lot of lenders, some of which are willing to assist those with bad credit.