With more than 20% of America’s mortgage market serviced by brokers, home buyers and investors have two primary paths to choose when seeking a loan.
Firstly, you can go straight to a lender, such as your bank, or newer loan companies like Quicken and Loan Deposit. Each one has its own set of products that come with specific terms and conditions.
But if finding the very best deal is important, rather than an out-of-the-box bank product, then you should consider the second path of using a mortgage broker.
They provide access to a range of loans from multiple banks and lenders. Their role is to source the most suitable loan for your circumstances and work with the lender on your behalf.
If you’ve never used a mortgage broker, here is an overview of the services they can provide:
Assessment of your financial circumstances
A mortgage broker will work with you to calculate your income and outgoings, plus any savings, and give you an idea of the size of loan a lender might provide to you.
Locate suitable loan choices
Not all mortgages are the same. You may want a no-frills loan, which usually comes with the lowest interest rate. However, if you require payment flexibility, a transaction account or a fixed interest rate, they’ll find the best solutions for you to consider.
Manage the application
Applying for finance is time-consuming and requires a lot of form-filling and gathering of the relevant paperwork. Your mortgage broker will know what’s required. They’ll help you with the actual application and manage any questions your prospective lender might ask.
Advice on tap
You’re bound to have many questions regardless of whether this is your first mortgage or you’re refinancing. Your broker should allay any fears and offer advice as it’s needed.