When it comes to securing financing to buy a home, the process can be both time-consuming and confusing. A mortgage broker can help by making the process of getting a mortgage loan simpler and more convenient. When deciding whether to use a mortgage broker or a bank, it may help to know what a broker can do for you that a loan officer in a bank may not be able to do.
A mortgage broker works with multiple lenders.
What does that mean for you? It means you have more loan options from which to choose. A mortgage broker will help you sift through the rates, terms, and loan conditions that different banks and other financial institutions offer in searching for a loan deal that best meets your particular needs.
If you go to the bank where you normally do business, the loan officer there can only give you information about the loan programs and mortgage rates that particular bank offers. A mortgage broker may be able to get you a deal with a lender that offers a rate better than what your bank offers. Even if you shop rates and terms at different banks on your own, you have to negotiate with each lender separately. A mortgage broker does all that for you.
An experienced mortgage broker possesses extensive knowledge in the area of home loans.
What does that mean for you? It means you will be working with someone who knows both the local real estate market and mortgage market and can offer advice about home buyer grants and special loan assistance programs. Mortgage brokers are experts who also are knowledgeable about home buyer tax credits and incentives that can reduce the amount of cash you will need to close on the loan.
A loan officer at a bank may only tell you about special programs for home buyers offered by that particular financial institution. But if your income is low or you've had credit problems in the past, a mortgage broker often has access to specialty loans or out-of-state lenders that may offer you a more competitive rate and loan terms.
Your mortgage broker also will work with you on a more personal level, walking you through the loan process from start to finish. The loan officers at banks aren't always as readily available. You may spend a lot of time trying to contact a loan officer with questions you have, and then still have to wait for a return phone call.
A mortgage broker will follow up with the lender or reapply elsewhere if your loan application is denied.
What does that mean for you? It means you won't have to start the entire application process over again when you re-apply with a different lender. A mortgage broker will automatically resubmit your application to another bank or financial institution for you. A broker also knows what different lenders require before submitting your loan application – information that can help qualify you the first time through.
A mortgage broker does the legwork.
What does that mean for you? It means you save time and receive help with the paperwork, including interpreting all the fine print. A mortgage broker informs you of both the pros and cons associated with the kinds of mortgage loans for which you may be eligible. He or she will help you understand what each option offers, as well as what a lender requires.
At some banks, the loan officers only take applications. They aren't involved in processing the loan. A loan officer may not explain the loan process completely, tell you what to expect throughout the process, or warn you about what could go wrong. But even after your loan is approved, a mortgage broker will continue to assist you with the remaining steps of the loan process through to settlement.
Contact a company like Premium Mortgage Corp to get set up with a mortgage broker today.