5 Reasons Why You Should Work With A Mortgage Broker

With each passing year, more people are looking to buy their first home. Let’s pretend that you’re ready to enter the market and make an offer on the house you want to call home, it’s time to figure out which mortgage lender will approve your loan. Should you attempt to work with a bank or find your own lender? Or should you work with a mortgage broker?

Working with an experienced mortgage broker can help make the process easier and protect your interests. If you need convincing, here are a few more reasons why working with a mortgage broker is a good idea.

But before we get started, you might be asking, what is a mortgage broker?

Mortgage brokers are mortgage professionals who can have access to a network of different lenders. Mortgage brokers are highly regulated and are a great alternative to working with your bank.

Mortgage brokers can help you save time and money when buying a home, by providing unbiased advice and by helping to lower the rate you are offered. They can also help you to get the best mortgage deal for your specific needs and can provide you with valuable mortgage education, no matter your situation. Finally, using a mortgage broker can protect your credit score should you need to apply for a loan in the future.

A great mortgage broker will work as your advocate when dealing with lenders. In the case that a lender may have some doubts, a broker can tell them the full story of your financial situation, which cannot always be told in numbers on paper.

So, let’s dive into the 5 reasons why you should work with a mortgage broker.

1. Mortgage Brokers Can Help You Save Time And Money

Instead of applying at your local bank or going directly to the lenders yourself, your mortgage broker will do all the hard work for you. Not only does this save you time, but it can also save you a lot of money. gage brokers have a network of different lenders who can offer you the best rate.

Your mortgage broker is responsible for finding you the best lenders and rates based on your financial situation. They will make the calls, file the paperwork on your behalf, and coordinate with underwriters to verify that all of your information is accurate before approving your loan. Your broker will also ensure you file all of the necessary paperwork correctly to save time. Plus, mortgage brokers can often work around a client’s schedule, which can save them time, hassle, and money by not missing valuable time at work.

On top of this, with access to many different lenders, a broker can find lenders offering a mortgage with a lower rate than you likely could, which could mean thousands of dollars in savings over the life of your mortgage.

2. Lower Mortgage Rates

Your mortgage broker will have relationships with a number of different lenders, which may result in them being rewarded with lower interest rates. These lower rates can then be passed along to you, resulting in you paying less for your mortgage. This means that you would be paying less for your mortgage every month than if you were to secure financing yourself either at a bank or at a different lender. and they can help you avoid lenders offering unmanageable payment terms or high rates. 

3. Unbiased Advice

Mortgage brokers do not work directly for one specific bank or lender which means that they have your best interests in mind. A great mortgage broker will look at your entire picture to ensure that you are receiving the best possible mortgage. This means that the lender you work with will be best suited for you, not the broker.

Brokers are not obligated to recommend only one particular financial institution’s or lender’s mortgage product because they work independently from banks or lenders.

4. Mortgage Education

A good mortgage broker will walk you through the process of getting a loan, but a great mortgage broker will take on the role of personal advocate throughout the process. They will happily teach you what to expect every step of the way and explain the financing process to you in terms that are easy for you to understand. They’ll help you learn how to identify marketing trends and help with legally transferring property.

A great mortgage broker will also work with you to develop a plan for dealing with real estate agents based on their own experience. This can help you have realistic expectations about the home-buying process and make it easier for your agent to find the right home for you. By teaching you what they know, mortgage brokers are able to lend a degree of comfort during this important process.

If your current situation won’t allow you to get a mortgage, a great broker will give you the advice you need to help you improve your finances and look more creditworthy in the eyes of lenders. This could include the exact steps that you will need to improve finances and credit, plus an idea of how long it will take before you can try to apply for a mortgage again.

5. Protect Your Credit

If you were to apply to multiple lenders and banks yourself, this can damage your credit score. Each time you apply, you are hit with a hard credit check. If you do too many hard credit checks within a short period of time your credit score will decrease and it will be seen as a red flag by lenders. When working with a mortgage broker, they typically only need to pull your credit score once before submitting your credit report to any lender on your behalf. The more you protect your credit the better, as your credit directly affects your interest rate and approval.

Conclusion

Using a mortgage broker makes a lot of sense and will make the mortgage approval process a lot easier for you. If you decide to work with someone like myself, you will get unbiased advice, quick processing times, and the peace of mind that comes with knowing that I am looking out for your best interests. It is my job to get you into your dream home on the best possible terms, and I will do everything in my power to make this happen. 

Are you ready to purchase your next home? Reach out to me directly or start your application here: www.sandraforscutt.ca/mortgage-application/