Mortgage Advice: Why You Need a Broker

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November 19, 2020December 2, 2020

It is common for potential house buyers to doubt mortgage advice and if they have made the correct offer when buying a house. Homeowners looking for capital to remodel major parts of the house may also struggle to secure the required financial resources.

Access to the right type of financing is equally important for holders of those mortgages with an available room for refinancing with cheaper debt. For many, the lack of the best financing options is likely to cause the biggest difficulty for flexible homeownership.

In the past, it was rather easy to secure a mortgage with a bank and many people hardly questioned the vital terms of a loan contract such as repayment periods and interest rates. Time has changed now; there are numerous loan products in the real estate finance markets and lenders have become more stringent when approving mortgages.

It is to the detriment of the homeowner if they end up securing mortgage terms without carrying out a good comparative study of the available options. Potentially, a lot of money is lost by the mortgage holder in interest savings and their loan repayment credibility might be affected.

Here are the ways a mortgage broker will assist you to get a good mortgage advice:

1. Mortgage Brokers Know of Lower Rates

This is probably the most important reason for having a mortgage lender at your corner. Mortgage brokers are trained professionals who accumulate lots of information on current lenders and lending rates in the market.

In most cases, many mortgage brokers access market information before it is officially advertised to the market by a lender. A mortgage broker will guide you to select the most competitive rate among many mortgage products provided by various credit unions or banks.

2. A Mortgage Broker Provides Easy Accessibility to Lenders

By practice, it is not uncommon for lenders to insist on having a mortgage broker as an intermediary to potential mortgage holders. In these instances, the mortgage broker assesses the suitability of the lending institution to your financial needs and also negotiates for the low terms with the lender on your behalf.

From work experience, all reputable mortgage brokers have built sound relationships with most mortgage lenders. Most borrowers who overlook the need for mortgage brokers end up paying stiff prepayment penalties when they break the mortgage contract at a future date.

Prepayment penalties coupled with high-interest rates can adversely throw your finances completely off the mark.

3. Will Help You Get a Customized Mortgage Product That Fits Your Needs

Securing the right mortgage product is not a case of “one-for-all” and to a large part because no piece of real estate is truly similar to another. Different homeowners will probably need different loan terms. A mortgage broker will help you tailor the ideal mortgage product based on your financing requirements.

Depending on what you need, mortgage advice will get to the bottom of what to recommend and explain why you might need softer prepayment terms, flexible repayment schedules and can also direct you to lenders who can process a mortgage for self-employed individuals who might have irregular incomes streams.

From the expansive data they have accumulated in practice, brokers can help you find the ideal mortgage lender and product at affordable rates and upon an assessment of your financial position and needs.

4. Professional mortgage advice throughout the Process

All lenders have made the loan qualification and approval process rather strict as a means to self-protect from bad loans. There are many requirements and steps involved and the likelihood is high for a lender declining to a loan request is high. A solitary mistake can bring your real estate investment plan to a halt.

For this reason, it is important to have a broker by your side who will guide you all along the loan application process until you have successfully closed on a good mortgage financing deal.

5. No Cost

Mortgage brokers are compensated from the lender’s side through commissions. A potential homeowner seeking mortgage brokerage services does not have to pay the brokers any fee.

However, you might have to pay the broker if you are dealing with a private mortgage lender or a lender who by operation does not pay broker fees. In any case, the mortgage broker will notify you of possible costs well in advance.

6. A Mortgage Broker Makes a Case for a Good Credit Score

Having a mortgage broker reduces the work and time the lender needs to check your credit performance. The lender is forced to carry out a hard check of your credit score every time you apply for a mortgage without a broker’s input. Your credit score falls when you attempt the application process multiple times without a broker.

On the other hand, when you as the homeowner, use a mortgage broker when applying for a loan, your credit score is protected because the lender will have to check your score one time.

7. A Mortgage Broker Helps You Save Time

It can be a lengthy and conflicting process for one who is deciding whether to dedicate time to sourcing lenders and making appointments with lenders or to searching for the house you want.

A mortgage broker has characteristic business relations with many lenders, mortgage institutions, banks and other mortgage lending institutions. From expert know-how, mortgage brokers can quickly source lenders and recommend the mortgage product and general mortgage advice that best fits your needs.

A mortgage broker will assist you to come up with a comprehensive breakdown of comparative mortgage options thus making your work easy and convenient for you.

Conclusion

A mortgage broker offers invaluable input to a potential mortgage borrower guiding you with the best mortgage advice every step of the way. When you need to secure a mortgage always consult your broker to find out the best opportunities available.