Getting a loan can tough, especially if you’re a first-time homebuyer. Unless you’re a financial expert, it can be daunting to understand the real estate market trends and jargon. Most homebuyers feel intimidated in the beginning because understanding mortgage rates, fees, and terms need some knowledge and experience. If you’ve finally decided to take a mortgage, you have two options- either go to the bank directly or hire a mortgage broker. There’s nothing wrong with directly approaching a lender but due to lack of knowledge, you may end up making a wrong decision. So, instead of struggling to choose the right loan, it’s recommended to hire a mortgage broker.
A mortgage broker is a financial specialist that has completed a Diploma of Finance and Mortgage Broking, and works as a mediator between homebuyer and lender. These professionals represent the interests of homebuyers to lenders and assist buyers in making the right decision. A qualified mortgage broker will help you better understand loan types, interest rates, loan to value ratios, and other critical things about the real estate market that makes a huge impact on the total amount you pay for the mortgage. If you still think hiring a broker is an unnecessary expense, here are some reasons why you should hire a mortgage broker.
Professional mortgage brokers have years of experience in the finance industry and have industry connections. Brokers have access to a huge network of lending institutions and banks that are out of reach of an average home buyer. Even if you have knowledge about the mortgage industry, hiring a broker means getting access to their network. Brokers use their connections to negotiate with lenders and help you in getting affordable rates. Their connections come in handy in reducing mortgage fees and help clients in saving hundreds of dollars. Moreover, a huge connection also means getting access to more deals and a variety of options to choose from.
When it comes to buying a home, you want to do things as soon as possible. However, the process of obtaining a mortgage can take a lot of time if you handle everything on your own. The process will involve contacting different banks and lenders, comparing different rates and terms, sending a separate application for each lender, waiting for approval, and completing all the formalities. However, once you hire a mortgage broker, you simply need to fill out one application and the broker will handle the rest of the things. Your broker will get multiple deals for you, compare them, and suggest you the best option based on your unique financial situation. In addition to this, the broker will handle all the paperwork and that results in saving your precious time.
Brokers have a better knowledge of the real estate market and they always represent their clients’ interests. Their job is to access a wide range of mortgage products to choose the best deal for their client. Moreover, they have great negotiation skills to help their clients obtain favourable rates and terms. All this helps in saving a lot of money by obtaining a lower rate deal.