The thought of refinancing a mortgage or applying for a new line of credit can be very stressful for many people.
However, the myriad of paperwork, phone calls, and forms to fill out can make the process look daunting.
That is one reason many people decide to work with a licensed mortgage broker to help them through the process. What you get from working with a broker can also be quite appealing.
Below are some of the top benefits of working with a mortgage broker.
1. More Loan Options
Mortgage brokers can shop your loan application around to several lenders, giving you access to more loan options. For example, if you apply through a lender directly, they may only offer you one or two mortgage products. But by working with a broker, you could be matched with several lenders and offered loans with varying interest rates and points.
Also, mortgage brokers have access to hundreds if not thousands of lenders who offer different types of loans, including fixed rate and standard variable rate mortgages (SVRs). A mortgage broker can help you find the best loan options available based on your needs and wants when it comes to buying a home or refinancing an existing house
2. Lower Fees and Closing Costs
Mortgage brokers don’t charge closing costs on their loans, so they can offer lower rates than lenders who tack on additional fees. A recent survey found that 86% of borrowers who used mortgage brokers saved money on their home loans compared to those who worked directly with lenders and paid for their own due diligence services (like appraisals).
3. Personalized Service
A good mortgage broker will work closely with you throughout the process to ensure that all your needs are met. They’ll also help you through any paperwork or documentation needed for your loan approval. Since they have access to multiple lenders, a good broker can find one that fits your needs perfectly.
4. One-Stop Shopping
Whether you’re buying or refinancing your home, working with a mortgage broker can save you time and money. A good mortgage broker can provide you with various loan options from various lenders, including conventional and government-backed loans. They also have access to special programs that can help you get approved for a loan when others have denied you.
5. Brokers Understand Their Craft
The more experience a mortgage broker has in marketing, the more likely they will find the best rates for you. They will also help ensure that everything goes smoothly through the process of getting approved for a loan.
Brokers are also trained to close deals quickly and generate leads efficiently, so there will be less stress while waiting for your paperwork to go through the system. And because they have so many lenders at their disposal, they can usually find one who will work with your situation even if it’s not ideal (such as making sure that all of your paperwork is complete).
6. Faster Processing Time
Another benefit of using a mortgage broker is that they can speed up the processing time by submitting your application electronically instead of sending in all the paperwork yourself (including things like pay stubs and proof of income).
You’ll also save time having to go back and forth with lenders over questions or concerns about your financial situation before finalizing terms on your loan agreement; this can sometimes take several weeks if you’re doing it yourself.
7. Higher Rate of Approval
Mortgage brokers have access to more lenders than banks and other financial institutions, which means they can find you the best rates and terms. The average approval rate for people who go through a broker is higher than for those who don’t. This is because brokers have access to different lenders, which means they can get you better rates and terms or bank websites.
8. Avoid Strict Guidelines
One of the biggest advantages of working with a mortgage broker is avoiding strict guidelines set by lenders. Mortgage brokers are not employees of any particular bank, so the same rules don’t bind them as banks and other financial institutions. This means that they can offer more flexibility regarding your mortgage application. They can recommend different types of loans that might work better for your situation than the ones available from traditional lenders.
9. Access to Newer Products
Another benefit of working with a professional is that they have access to newer products that may not be available through traditional lenders. For example, if you want to get a loan that allows you to pay more than just interest each month on your loan principal balance, then working with a mortgage broker may help you find just what you’re looking for. This type of product isn’t available from traditional lenders because they only offer fixed-rate mortgages or adjustable-rate mortgages (ARMs).
10. Gain Negotiating Power
A mortgage broker can help you get a better interest rate on your loan. Working with one could save you thousands of dollars, depending on the size of your loan and the term you choose. Mortgage brokers can negotiate with lenders on your behalf and find the best rates that match your needs. They also typically offer more options than banks and credit unions since they have access to many more lenders.
Mortgage brokers will help investors compare mortgage referrals and assess the different options available. They are trained professionals that can help you get the best interest rate. You will also be able to work with them in your home or at their office. It is a great way to pay less interest without spending much time on it. Even if you don’t need the services of a broker, it is a good idea to talk to one. That way, you will know if you can find even better deals and save money over time. For more information, you can visit their website