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Should I Use a Mortgage Broker? Perhaps, Here’s Why
You may be wondering, “should I use a mortgage broker?” Use this guide to learn the benefits of working with one (and some of the drawbacks).
A mortgage broker is a middle man between you and your end result, so do you really need them? The answer is yes. Buying a new home is always exciting, but it’s not the easiest process in town. The fact is that reputable mortgage brokers will get your loan processed faster and with less stress.
In this article we will answer the question “should I use a mortgage broker” by giving the facts and benefits. Then you can make an informed decision on your own.
What Is a Mortgage Broker?
A mortgage broker is a professional who helps you secure a mortgage loan. They work with different lenders to find you the best deal possible. It is their job to make sure you get a good interest rate by shopping around for the best deal on behalf of their clients.
What they do is save you time by doing all the hard work in finding the right lender for your needs.
What Does A Mortgage Broker Do?
Acting as the liaison between you and the lender, mortgage brokers help to get loans approved.
- Gather all the necessary documentation from you that is required by the lender
- Present your loan application to different lenders
- Negotiate on your behalf with the lender for the best interest rates and terms
- Manage the loan approval process
- Help you to choose the right type of loan for your needs
If you’re still wondering if you need a mortgage broker, here are some pros and cons to help make your decision.
Benefits of Using a Mortgage Broker
Mortgage brokers have access to multiple lenders, which gives you more options when it comes to choosing a loan. You’re not limited to working with just one bank or loan company. They know the ins and outs of the loan process well.
Since they’ve processed numerous loans, they know what’s required and the quickest way around any hiccups. This helps you to avoid any delays or mistakes in your application.
Mortgage brokers are experts at negotiating and often get you a better interest rate than if you applied for a loan on your own. That means you’ll get the best deal possible, something you may not be able to do on your own.
Plus, they will save you time. The entire process of shopping for a loan and going through the application is time-consuming. Mortgage brokers do all the legwork for you allowing you to focus on other things.
Finally, they’ll help you even if you have credit issues. If you have bad credit, it is difficult to get approved for a loan. However, mortgage brokers have experience working with people with all types of credit and can help you get approved.
The Cons of Using a Mortgage Broker
As with any business relationship, there will be a few constraints. Some mortgage brokers charge fees for their services. Make sure to ask about this upfront so there are no surprises later on.
While most mortgage brokers are honest and ethical, there are some that aren’t. It’s important to do your research and make sure that you’re working with someone who has your best interests in mind.
Since mortgage brokers are working with multiple lenders, the loan process may take longer than if you applied for a loan on your own.
Even though mortgage brokers are experts at negotiating, there’s no guarantee that they’ll be able to get you the best deal possible. It’s always a good idea to compare offers from different lenders to make sure you’re getting the best deal possible.
Since mortgage brokers are working with multiple lenders, you may have to provide more personal information than if you applied for a loan on your own. Make sure you’re comfortable with this before proceeding.
Mortgage brokers are a great resource when you’re shopping for a home loan. They have access to multiple lenders and often get you a better interest rate than if you applied for a loan on your own. However, there are some downsides to using a mortgage broker, such as the potential for extra fees and the possibility that the loan process may take longer.
You’ll need to weigh the pros and cons to decide if using a mortgage broker is right for you.
Mortgage Broker VS Lender: Who Should You Use?
When you’re ready to buy a home, you’ll need to choose a mortgage lender. But how do you know if you should use a mortgage broker or go direct to a lender? We discussed the pros and cons of using a mortgage broker, now let’s take a look at the pros and cons of going direct to a mortgage lender.
When you go directly to a mortgage lender, you’re cutting out the middle man and any associated fees. Note that not all brokers charge an upfront fee so this is not applicable in all instances. It is likelier that your loan will process faster as you’ll deal with one lender instead of going to multiple and negotiating the best deal.
With this in mind, you’re limiting yourself to the terms and conditions of one lender. You won’t have as much experience as a broker in these negotiations and so there’s no way to compare the deal you’re getting with others.
The bottom line is that both mortgage brokers and lenders have their pros and cons. If you want a quick deal, it’s easier to just go direct to the lender. But think of the potential savings you’re missing out on. It’s important to do your research and choose the option that’s best for you.
Should I Use a Mortgage Broker?
All in all, there are many benefits to using a mortgage broker. They have access to more lenders, which gives you more options when it comes to choosing a loan. Mortgage brokers also know the loan process and help you to avoid any delays or mistakes in your application.
So the answer to the question “should I use a mortgage broker” is a strong yes. The negotiating and the help with any credit issues are convincing factors. Contact Belanger Financial to learn about our mortgage services in Ottawa and let us snag you the best deal around town.