When acquiring for a mortgage, many home buyers engage the services of a mortgage broker to find them the best terms and rates. Since the real estate market crash in 2008; however, the business practices of brokers have come under scrutiny, and the question of whether they are acting in customers' best interests has been raised. Here are some of the advantages of having a skilled mortgage broker.
Advantages
Saves You The Legwork
Mortgage brokers have regular contact with a wide variety of lenders, some of whom you may not even know about. A broker also can guide you away from certain lenders with heavy payment terms buried in their mortgage contracts. That said, it is beneficial to do some research of your own before meeting with a broker. An easy step to quickly get a sense of the average rates available for the type of mortgage you're applying for is to use a mortgage calculator. Tools like this will let you compare rates easily and provide you with extra knowledge when assessing a mortgage broker's credibility.
Brokers May Have More Access
There are some lenders that work entirely with mortgage brokers and rely on them to be the gatekeepers to bring them, suitable clients. You may not be able to call some lenders up directly to get a retail mortgage. Brokers can also get special rates from lenders because of the volume of business generated that might be lower than you can get on your own.
You May Save Some Fees
Several different types of fees can be involved in taking on a new mortgage or working with a new lender, including origination fees, application fees, and appraisal fees. Sometimes, mortgage brokers may be able to get lenders to waive some or all of these fees which can save you hundreds to thousands of dollars.
Looking for a trusted and skilled mortgage broker? Consult Lendium today!