There’s a lot of confusion about what a mortgage broker is, and what the benefits are of working with one, so I thought I’d explain.
First, it might help to think of a mortgage broker as a liaison between you (the client) and the lenders who can provide the best loan for your specific scenario.
A broker works with you to gather your financial data, including your credit report, income sources, and debt position. From there, they help you figure out the right loan amount and provide the lender and loans available to you.
You’ll find that a good broker will give you advice about loan programs and interest rates, and you can expect a close relationship with them. They’re truly in your corner to get you the best mortgage they can.
A mortgage broker will also save you huge amounts of time and effort by doing all the lender and loan research for you.
You could spend days calling several lenders to find out what programs they offer, which ones you qualify for, and comparing their interest rates, or you can hire a broker and let them do the same work for you in half the time.
More often than not, a bank has set rates their loan officers must use. But your broker has access to varied rates, both because of the different lenders they partner with and their lower overhead costs.
Also, if you’re declined by a retail bank, your only option is to start over again with another lender. But, if you work with a broker, they have a group of lenders in their network. If you’re declined by one, they simply move on to another, and you don’t have to do a thing.
Mortgage brokers are licensed by their state and regulated by the Nationwide Multistate Licensing System and Registry (NMLS), with standards just as strict as the retail banking industry, so you won’t have to worry about their ethics or business practices.
All in all, I think you’ll find the benefits of hiring a broker priceless, especially considering the time and money they can save you.
I hope you’ll consider using one the next time you’re in the market for a mortgage.