7 Reason Best Reasons to Use a Mortgage Broker
So, you have made an offer on your dream house, and it has been accepted. Or perhaps you have decided to give that dusty old basement a fresh look and need to refinance. Or maybe your mortgage has come up for renewal, and are looking for a better interest rate or terms. Well, the only thing stopping you from a more flexible life is getting the best financing solution for your situation.
Back in the day, you would take a stroll to the bank and ask for a mortgage. If offered one, you would accept it with no questions asked. However, those days are long gone, and you have many options nowadays. By failing to shop around and assess your options, you potentially leave thousands in interest savings, not to forget that lending institutions have become stringer in approving most mortgages types.
That being said, here’s why it is important to use a Atlanta mortgage broker in the current industry:
- Lower Rates
One of the primary reasons people opt to get a mortgage through a broker is because these specialists have access to an array of lenders and rates. More often than not, mortgage brokers have access to rates that aren’t always advertised and can be substantially lower than those advertised by credit unions or banks.
Most mortgage products and rates can only be accessed via a broker. These specialists can also vet lending institutions and negotiate on your behalf. Reputable brokers ideally have solid relationships with banks and other lenders. Overlooking these lenders and deciding to take a mortgage with a bank could see you getting strict prepayment penalties for breaking the mortgage. This, combined with a higher interest rate, can cost you thousands of dollars down the line.
An experienced mortgage broker can better tailor a mortgage to your individual needs, be it working with a lender with more flexible terms of prepayment or one who’s more flexible in regards to self-employment income. Since brokers have access to more lending institutions, they are better able to find a mortgage and lender based on your financial situation and specific needs and ultimately getting you the lowest mortgage rates available.
- Guide You Through the Process
We can all attest to the fact that the loan application process is no walk in the park. There’s a lot involved, and a single mistake could make the difference between decline and approval. As such, it is best to have a professional hold your hand throughout the process. An excellent broker will work with you until the mortgage closes.
- No Cost
Mortgage brokers are usually paid in the form of commissions by the lenders. So, as a consumer, you don’t have to pay them. The only time you might need to pay a fee is when you hire a private lender or one who doesn’t pay broker fees. However, a broker will inform you of the potential extra costs in advance.
- Protect Your Credit Score
If you apply at many lenders on your own, it’s not only time- consuming, but can result in a lower credit score. That’s because every time you apply at a lender, it prompts a hard credit check. When you do too many of these in a short period, it lowers your credit score. However, when you use a mortgage broker, they only need to pull your score once, thus protecting your credit score.
- Save Time
It could take you several weeks to arrange for appointments with competing lenders, and we know you would rather spend your time searching for a house. A mortgage broker works directly with numerous lenders, including credit unions, banks, etc., and given their expertise, they can quickly narrow down to those that suit your needs. Working with a broker makes comparison-shopping easy, fast and convenient.
As you can see, utilizing a mortgage broker has many perks. The next time you need a mortgage, do not hesitate to get in touch with your broker and see the best options available.