Whether someone is a first time or a seasoned home buyer, each home purchase requires the careful consideration of how the mortgage will be obtained. The choices include owner-financing, which is rarely an option; working with a bank directly, which leaves you with few options; or using a mortgage broker. Each choice has its pros and cons and writers could fill books with what someone needs to know about each of the choices available. In fact, there are lots of books on these topics but in the midst of making a home buying decision, most buyers will simply not have the time to focus on entire books. Here is a thumbnail sketch of the benefits of using a mortgage broker.
√± A mortgage broker has the ability to search a wide range of financing options quickly and easily. If an individual were to try and get the rates and closing costs from all of the possible lending institutions they would likely still be searching long after their original closing date. There are data bases available to mortgage brokers that allow them to narrow the search by interest rates, credit scores, and estimated closing costs.
√± Speaking of saving time, a mortgage broker can also offer assistance in the great paper chase for their clients. Mortgages require a lot of paperwork to be gathered and submitted. Additionally, a mortgage broker will have contacts at the companies they have previously worked with and this can aid in making sure those tall piles are paperwork are pushed to the right desks expeditiously.
√± As a bonus, sometimes the mortgage broker’s database and banking relationships can also give their clients access to rates and deals that are quite a bit more favorable to borrowers than can be found on the open market. This does not always happen, but it is a set of happy circumstances for the home buyer who stumbles into it.
√± If a home buyer has poor credit, a mortgage broker can help them find banks that are willing to issue them a mortgage for a fair rate. When a buyer goes looking for a mortgage on their own, many smaller banks get overlooked in the search for a mortgage when, in fact, these banks are the ones that might be likely to take a chance on someone with less than stellar credit.
If a home buyer decides to hire a mortgage broker, they should look for one that has access to a full scope of lenders, which means the buyer will not miss out on little known great rates and banks. They should also find a broker that has a experience and a proven track record of working in their client’s best interests instead of the banks.