Before you apply for a mortgage, it is a good idea to find out more about the various ways to get a loan.
Some borrowers prefer to work with their bank’s lenders or to get financing through large mortgage companies. However, many borrowers prefer to work with mortgage brokers.
What is the difference between a mortgage broker & a mortgage lender?
A mortgage lender is a financial institution that offers home loans to qualified borrowers.
A mortgage broker is a licensed professional that acts as an intermediary between the borrower’s lender. Although it is not necessary to work with a mortgage broker, many people prefer to work directly with their lender. There are certain benefits to working with a broker.
What is the value of mortgage brokers?
Simply put, having more options is the greatest advantage to working with a mortgage broker. This can be a very valuable and attractive advantage in today’s fast-paced, ever-changing world.
Look at Netflix, Spotify, and the whole world of online shopping. Even dating sites. Today’s consumers expect easy access and convenience to a wide range of options.
Mortgage brokers are focused on YOU.
A mortgage broker will give you faster access to more home loan options because they are partnered with many wholesale mortgage lenders.
They can also focus on the best product for your needs because they have partnerships with multiple wholesale lenders.
Mortgage brokers can assist with finding solutions for difficult situations.
It’s similar to shopping in person vs online when you work with a mortgage broker. You can only choose what you want to buy when you shop in person.
It can be difficult to find the right item if you are looking for something very specific. Online shopping is easy. You can just type what you’re looking for and the search engine will show you multiple options from many web retailers.
This will allow you to find difficult-to-find products much quicker. This is similar in concept to what mortgage brokers can do when it comes to homebuyers with unusual or difficult circumstances.
How can mortgage brokers help me find the right loan for my situation?
You will usually only have the option of one type of loan when you work with a mortgage lender. Let’s take, for example, a first-time home buyer who doesn’t have enough cash to make a downpayment.
The FHA covers loans with low down payments, as low as 3.5% in some cases. However, the mortgage company that you are working with is not approved by FHA and does not offer this financing option.
A mortgage broker could help you get an FHA loan through one the many wholesale mortgage companies.
An exceptional mortgage broker can also help you determine the best type of loan for your situation. They will review your financial information, discuss your homeownership goals, and then make recommendations based upon a larger representation of today’s market.