Here is Why Working With a Mortgage Broker is Better
When you are making a major life decision, do you prefer to be limited to one or two choices, possibly foregoing a better option? Or, do you prefer to have a slightly wider range of options available to make the best choice possible?
While this is a rhetorical question, the answer is something you likely want to blurt out after reading the previous lines. What if the expanded choices were accompanied by an expert who could guide you through the various pros and cons of each choice? It sounds like a no brainer when you put it that way!
What Is a Mortgage Broker?
Mortgage brokers are a type of middleman in the mortgage world that come with significant benefits. A mortgage broker acts on your behalf and serves as a liaison, or go-between, for you and banks. A broker works to find the best balance between his or her arsenal of lenders and you.
They can do this because they have pre-existing relationships with more than any one bank or direct lender. And their extensive knowledge, combined with those relationships, yields a better deal for you in the end. It means less work contacting various banks and it also ensures that you are not locked into any single bank. Mortgage brokers provide options.
No two mortgages are exactly alike. Credit scores, circumstances, rates, and many other variables differ, and this is where a mortgage broker comes in quite handy.
Mortgage brokers are regulated and licensed professionals who will do the heavy lifting like gathering the necessary documents, pulling your credit score, verifying income, and more. With this information, the broker can then apply for loans from several lenders in a short time frame. This equates to fewer credit hits and a more efficient process overall than if you were to attempt to conduct the same level of applications to multiple lenders.
A mortgage broker then guides you on making the best choice for your mortgage using the wisdom gleaned from their experience.
Last but not least, mortgage brokers remain helpful during the underwriting process of a mortgage. They work closely with the bank or other lender of choice. They will help provide any documentation and anticipate any other needs that may arise. Mortgage Brokers also collaborate with your title company and real estate agent to ensure a timely and smooth closing process.
A mortgage broker is truly on your side.
Three Reasons to Opt for a Mortgage Broker over a Bank or Direct Lender
Mortgage brokers provide some important advantages over the traditional route of applying for a mortgage with the bank or lender you have always worked with.
Here are three reasons why you should work with a Mortgage Broker:
- Mortgage brokers can save money. At the end of the day, the beauty of a broker is that they are not beholden to any single institution. Of course the local mortgage banker wants you to get a mortgage with the bank where he or she works. If the other bank down the street has a better rate, they will be the last person to tell you that. With the right mortgage broker, you will see multiple routes with multiple banks or lenders.
- Mortgage brokers save time. It’s easy to get online and check out reviews these days. While assuming that the majority of these reviews aren’t written by the family members of the lender being reviewed, it still takes precious time to complete multiple applications and conduct your own survey of possible mortgage options out there. Mortgage brokers are intimately familiar with what is necessary in the mortgage application process, and they will gather all of the data up front.
This time advantage persists through the underwriting and closing portions of the mortgage. Mortgage brokers continue to work closely with Underwriters and Real Estate Agents to streamline the process as much as possible.
- Mortgage brokers are on your side when it comes to getting paid. The lender you just spoke with at the bank gets paid a salary whether or not he or she works with you. Your mortgage broker will get paid when the loan is closed. This means that your broker has a solid financial reason to be prompt and precise.
While there are other advantages to opting for a mortgage broker, these three reasons stand out as the most important. Mortgage brokers are logically a better choice to expand your options and find the best fit mortgage for your circumstance.
Range Lending is a mortgage broker ready to help you find the right mortgage. We are known for achieving our goal, which is to get you the best interest rate around. We answer our phones both day and night to ensure that your loan closing comes as quickly as possible. Apply for your mortgage today with Range Lending!