The Advantages Of Hiring A Mortgage Broker
Whether you are looking for a new mortgage with which to buy a home or a refinance of your existing loan, you will have to decide either working directly with a lender or hiring a mortgage broker. A broker helps you find the best possible loan program from the menu of options available to him. The hope is that he will save you more than his cost of fees.
Greater Election in Lenders
While you can buy from as many lenders as you wish, the reality is that you have a limited number of banks with which you can communicate. As per Get Me My Mortgage, a good mortgage broker should have contact with many different lenders, although you should check your broker’s history to make sure he is not committed to just a handful of favored lenders. An effective broker should also have access to special programs at wholesale prices that individual borrowers cannot access.
Greater Flexibility of Execution
Once you choose a direct lender, you are blocked in your way of doing things. With a mortgage broker, you can have more control over the closing process. Your broker can serve as a link between you and your lender to obtain flexibility for closing times, the possibility of leniency for paperwork or credit problems, and help you find a loan whose terms best suit your needs.
Rates and Lower Costs
For many borrowers, the key benefit of working with a mortgage broker is that he should be able to find a better deal on his mortgage than yourself. It does so through a wide range of contacts who have direct access to special programs that are not available to the public. Frequently, the broker can set the price of their rates on the loan’s interest rate or final closing costs, letting it benefit from its services without a large outlay of initial cash.
Extra Services
Some mortgage brokers will do more than just looking for a mortgage loan. They could help you with a basic credit repair if you need it. Others will hold your hand throughout the escrow process, keeping you informed about the status of your new mortgage as you go through the application through closing.
It is clear, then, that the broker is a multi-product. It can offer many of the products of the market. Now, what exactly does a mortgage advisor do? Study the client’s situation, that is, their income, expenses, debt capacity, credit history and objectives in the business.
Each client is a new world. It is not the same, a young man who has been saving for some years, a visionary executive who does not want to lose time to become independent, an entrepreneur who makes investments in his new business or one who prepares for his first child. Each situation deserves special analysis to determine which the best options are. The normal thing is that the broker presents several alternatives to the client to review them with him and help him to make a good decision.