A mortgage professional is a valuable and well-versed expert that you want to work with when buying a home. Not only will they save you time, but you will also get the most bang for your buck since you’re working alongside someone with ample knowledge in the lender market. A mortgage broker will negotiate the lowest interest rates for a loan on your behalf. Alongside negotiation experience, there are several other reasons why you should hire a professional.
Properly Assess Your Buying Ability
Purchasing a home isn’t a buying decision and transaction most people are accustomed to making and doing day in and day out. Since you might lack certain knowledge or experience with the process, brokers can fill these gaps with their expertise and streamline the procedure by offering sage counseling.
With the Dodd-Frank Act in place, they also aren’t allowed to charge hidden fees, or receive payment from a lender and a borrower on the same loan – so you have peace of mind knowing they are working alongside you as a partner with your best interests in mind.
No need to spend hours scanning through different loan options, scheduling dozens of face-to-face meetings, filling out applications, or reading through mounds of paperwork when a broker will do the work for you. You’ve already spent weeks touring houses, looking up real estate listings, and getting ready to move out. While finding the best interest rate is important to many borrowers, working with a trusted and easily accessible broker provides you with the personalized level of service that most first time or experienced home buyers will need to close in significantly less time than going it alone.
Find the Lowest Rates
Mortgage professionals can help you save money on certain buying fees like application fees and appraisal costs. These ancillary fees can quickly add up to thousands of dollars, which already makes the cost of hiring a broker worth the investment. A broker’s fee typically ranges between 1.5% or 2% of the loan. Depending on your loan amount, saving a couple thousand dollars on ancillary fees can offset the cost of his or her services.
Have Access to Unlisted Lenders and Contacts
Some wholesale lenders aren’t listed online because they only work exclusively with mortgage professionals. Working with a broker gives you the inside scoop on such deals you might be missing out on. They can also give you insight into certain lenders, and steer you away from ones that have a bad reputation.
Get Access to Loan Programs
Since mortgage professionals typically work within a network of 5 to 12 lenders, they know of lenders who offer specialized programs. Such programs include no down payment loans, home renovation offers, or opportunities for buyers with low credit.
Leverage Their Connections when You Lack Good Credit
Trying to get a loan when you have bad credit can be really stressful. Especially if your primary bank has already denied your request. Fortunately, many brokers have the ability to access loans even if your credit isn’t ideal. Albeit if you are still unable to qualify for a loan at the moment your Broker can offer guidance to you to ensure you can prepare yourself for your purchase in the future.
Now that you know what to expect, do your research on mortgage rates, talk to several brokers in your area, and make sure you ask them plenty of questions to ensure a dependable partnership.
To learn more about your mortgage options, contact us today.