When you want to apply for a mortgage – either because you want to refinance your existing loan or you want a loan for a new purchase – you have choices.
One of your choices is to spend hours and hours researching the many mortgage options available to you. Another choice is to utilize a mortgage broker who will do a lot of the work for you.
A big issue with going through the mortgage application process without the assistance of a mortgage broker is that each individual mortgage has its own unique terms. If you are not a financial whiz, and you don’t completely understand how mortgages work, you might end up selecting a mortgage that doesn’t provide you with the best possible benefits.
Following are several reasons it’s a good idea to use a mortgage broker to help you locate the best possible loan, and also to provide you with assistance through the application and loan closing process:
Using a mortgage broker can save you a significant amount of time. It’s a mortgage broker’s job to know which lenders are offering the best interest rates and loan terms that will meet your needs. Trying to find this type of information on your own can take time – and you may not have hours and hours to spend searching for deals that may not be widely advertised.
A mortgage broker will help you stay on track during the loan application process. Lenders require borrowers to submit a substantial amount of paperwork. If you use a mortgage broker, he or she will help you stay organized and will remind you to submit required documents.
Mortgage brokers can help people that have less-than-perfect credit or a low down payment find a loan. If you don’t have a perfect credit score, you might be under the impression that you will never qualify for a mortgage. However, a mortgage broker might be able to find a lender willing to work with you. Oftentimes, a mortgage broker knows about mortgage options that are not as mainstream as typical mortgages offered to individuals with excellent credit scores and 20 percent (or higher) down payments.
A mortgage broker will evaluate your situation and provide you with advice on the type of mortgage that might work best for you. There are many options when it comes to mortgages. While a 30-year fixed rate mortgage might be the most common type, there are many other choices that might be a better option for you. A mortgage broker is able to provide you with information about various alternatives.
It’s in a mortgage broker’s best interest to make sure your loan closes. Most mortgage brokers do not get paid unless your loan closes. Therefore, a mortgage broker will work tirelessly to make sure your loan closes successfully and on time.