Buying a house can be a daunting process, particularly if you need to get a mortgage to finance the purchase. Sifting through the many mortgage options that are available to find the best rates and overcome your particular borrowing challenges can be overwhelming. Many people believe that they must shop for a mortgage on their own, but it is also possible to enlist the services of a mortgage broker to pair you with the right lender for your purchase.
What Is A Mortgage Broker?
A mortgage broker is a licensed and regulated financial professional who serves as a bridge between borrowers and lenders. They originate, negotiate and process residential and commercial commercial mortgages on behalf of their clients. Although they can originate loans, they do not close or fund the mortgages themselves.
A mortgage banker only offers the products of their own bank and uses that bank’s funds for originating loans. A mortgage broker, in contrast, provides borrowers access to loans that come from a variety of lenders and can help borrowers find the best lender to suit their needs.
Mortgage brokers work in conjunction with other professionals such as underwriters, title companies, attorneys, lenders and real estate agents throughout the entire buying process.
Advantages Of Working With A Mortgage Broker
Although saving time and money are the biggest attractions of working with a mortgage broker, there are many other ways in which their services can be beneficial. Below is a detailed look at some of the greatest advantages of working with a mortgage broker.
Provide Access To Different Lenders, Loan Types And Rates
A mortgage broker can provide you with access to a variety of lenders, rates and types of loans. This can improve the chances of finding a favorable rate and terms. Moreover, some lenders work exclusively with mortgage brokers and depend on them to bring them suitable clients, making a broker necessary for individuals to access rates from lenders who might otherwise be inaccessible.
In addition, brokers might have access to special rates from certain lenders that could be lower than you would be able to secure on your own thanks to the volume of business they bring the lender. Generally speaking, the greater a broker’s experience and network, the more opportunities you will have to obtain the right loan product and interest rate to meet your needs.
Can Offer What Traditional Banks Cannot
Because mortgage brokers source mortgages from a range of lenders, they may be able to offer you a loan or a rate that a traditional bank cannot provide. They represent your best interests rather than those of the lending institution, which can be highly beneficial to you as a borrower.
They may also be able to get lenders to waive some of the fees that are involved in taking out a new mortgage, such as origination fees, appraisal fees and application fees. This can amount to hundreds or even thousands of dollars in savings.
Can Share Insights About Loans
A mortgage broker can give you some insight into how much you can afford to spend on a home and the chances that you will be approved for a particular loan. They possess extensive experience in the mortgage approval process across a variety of lenders and can guide you toward the options where you will have the greatest chance of success.
These brokers have regular contact with a broad range of lenders, some of which you may not have been able to find on your own. In addition, they may be able to steer you away from lenders that have complex payment terms buried within their mortgage contract.
Will Save You Time And Effort
With a mortgage broker, you typically only need to complete one application instead of filling out forms for every individual lender. This can save a significant amount of time. Another area in which mortgage brokers can save time is by providing formal comparisons of the loans they recommend so that you can easily see the cost differences, points, current rates and closing costs for all of the loans that meet your needs.
In addition, because they manage essential paperwork, keep underwriting on track and coordinate loan information with the relevant parties, they may help you close the loan faster.
Offer Personal Service
Mortgage brokers offer a highly personal service that usually begins with a thorough interview to identify your needs and goals in the long and short term. Many situations call for something beyond the traditional 30-year or adjustable rate mortgage, and mortgage brokers can devise innovative and sophisticated solutions to help borrowers finance the home of their dreams.
In addition, a mortgage broker can serve as your ally throughout the process, smoothing any issues that arise along the way and advising you throughout the entire process, including closing.
Work With Mortgage Brokers From MyLendingPal
If you would like to explore the options that are available to you when it comes to financing a home, work with the mortgage brokers from MyLendingPal for a highly personalized service that can help you secure the best rate.