Money

6 Good Reasons to Use a Mortgage Broker

Story Highlights

  • 1. They Can Get You The Best Rate
  • 2. They Can Give You More Options
  • 3. They Could Save You Money On Fees
  • 4. Your Broker Will Work For You
  • 5. They Have Special Access
  • 6. They Can Help You Navigate Local Laws

Whether you are a first-time home buyer or a seasoned property investor with a large portfolio, deciding to use a mortgage broker can be a confusing decision.

Some people are wary of using a mortgage broker because they fear losing control, or are scared off by the extra fees.

They couldn’t be more wrong!

Using a mortgage broker can be an incredibly wise investment which will pay you back many times for the funds you put it.

There are many reasons why using a mortgage broker can be advantageous to the home buyer – let’s take a look at the top six reasons to use a mortgage broker for your next property purchase:

1. They Can Get You The Best Rate

Mortgage rates can vary widely from one financial lender to another, even when quotes are given at the same time under the same official interest rate.

Many borrowers don’t realise this, or that they can apply for as many mortgage quotes as they like without any adverse impact on their credit rating, and simply get one mortgage quote.

A mortgage broker will shop around for the best rate for you, saving you a lot of time and potentially a fair amount of money too.

Sure, the difference in the mortgage rate can sometimes seem insignificant, but on a large loan (as most mortgages are) and over the life of the mortgage, this saving can add up to thousands in savings.

Your broker will also deal with the time-consuming process of pre-approvals and applications for multiple loans to make sure you get the best loan possible, hassle-free.

2. They Can Give You More Options

If you go to your own bank or other mortgage lenders directly, they will offer you mortgage options which will very likely only come from their own range of products.

These options may or may not include the best deals for you that are currently available on the market.

A mortgage broker, on the other hand, is independent from lenders, so will look at the market as a whole and find the best option for you.

Of course, you could do this yourself and speak to every bank and financial institution for information about all loan products and determine the best deal.

However, this is incredibly time-consuming, so having a broker do all this work for you is a preferred option for most of the home buyers.

3. They Could Save You Money On Fees

When you apply for (and secure) a mortgage, there are a plethora of fees which you are asked to pay: origination fees, application fees, etc… there are quite a number of these, and yes, they can certainly add up.

However, because mortgage brokers have special arrangements with mortgage lenders, they may be able to have the lender waive some of these fees. Depending on the fees and on your specific lender, this could amount to savings in the thousands.

4. Your Broker Will Work For You

Unlike loan officers at banks or other financial institutions, your mortgage broker works for you.

In fact, their pay depends on you closing the loan. This means that they will be available to you and be happy to address your concerns and questions.

They will also be working extra hard to make sure your home loan is approved because they have a vested interest in you securing your loan.

5. They Have Special Access

Another major advantage of working with a mortgage broker is that they may give you access to loans (and special rates) that you will not otherwise have access to.

Some mortgage lenders will only work with brokers, meaning that if you do not have a broker, you will be ruled out from being able to apply for these loans.

There are various loans on the market, each with their own pros and cons, so it is highly beneficial to be able to consider all the options available.

6. They Can Help You Navigate Local Laws

If you are buying a property overseas, it is even more advantageous to work with a mortgage broker.

Buying real estate in a foreign country can be a great way to find advantageous investment opportunities, but this comes with a number of extra risks.

Most of the risks are associated with the fact that you are not familiar with the local laws and regulations in that country. By hiring a local mortgage broker, they can guide you through the process and their local knowledge will protect you from making costly errors.

If you are interested in learning more about opportunities for foreign property investment, sites like bayut.com are great for finding properties in foreign locations and are a good place to start your journey before getting in touch with a mortgage broker.

Bottom line: there are a number of reasons why you should consider working with a mortgage broker. They will save you a lot of time and effort by doing much of the leg work associated with finding and applying for home loans, and may very well save you money, thanks to their in-depth knowledge, market-wide view and special connections.

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