When you are in the process of buying your first home, it can be overwhelming to understand all the steps required before you get the keys to your place. With so many moving pieces to this type of transaction, it is a good idea to find the right professional to smooth out the process and explain all the options and confusing terms.
This is where a mortgage broker can really help. Their advice gleaned from years of experience in the mortgage and home buying industry is worth at least the small fee that you’ll pay in order to make the process less confusing and save you a bundle as well. Let’s take a look at the 5 most important reasons for why you should hire a mortgage broker.
1. Using a Mortgage Broker Will Save You Money
Who doesn’t want to save money on what might already be the biggest purchase of a lifetime? Unless you are already a financial industry expert, a mortgage broker will save you money. How, you ask? Simply by having access to all the available lending options and knowing what works for your specific financial situation. Little details like PMI (private mortgage insurance), points, APR and bi-weekly mortgage payment options are all up for discussion here. A mortgage broker will be able to find you the best option and potentially save you thousands and in some cases tens of thousands of dollars.
2. Mortgage Brokers Will Save You Time
Time and money go hand in hand. Instead of having to research all the options yourself, you simply fill out your financial details and a mortgage broker will go to bat for you. Time is already in short supply for most people considering a move, so this is an important benefit to consider.
3. A Mortgage Broker Will Have Access to a Wider Selection of Mortgage Lenders
You might know of a handful of big name mortgage lenders like Wells Fargo, but what about the local credit union or your options as a military veteran? Tom of Mortgage Craft, a mortgage broker in Lancaster PA says, “we as mortgage brokers will know which banks tend to turn down applications as well as which banks are currently offering the best interest rates”.
4. Mortgage Brokers Negotiate with the Lender for You
Without knowing which rates and terms you qualify for, lenders can come up with their own seemingly arbitrary rules and interest rates. When they are dealing with your mortgage broker, however, they know that they have to put their best foot forward or the next lender in line will get the deal.
5. A Mortgage Broker Will Walk You Through the Process
I’ll be the first to admit, buying a house is an education all to itself. Having a mortgage broker on your side will help you side-step any pitfalls and avoid disappointments in the home buying process. They will also fill out the reams of paperwork for you, so when it comes to closing, all you have to do is sign the completed paperwork and drive away with the keys in your hand and a smile on your face.