Buying a home is probably going to be one of the biggest financial moves you will ever make, so getting all the guidance you can during the process of finding a mortgage is important. A mortgage broker acts as a middleman between you and lenders. Here's a look at the perks and disadvantages of working with these professionals.
Perk: You will have someone gathering the best mortgage options on your behalf.
Shopping around for the best mortgage is not always as easy as it sounds. You could have to visit an entire list of lenders just to get rates and loan proposals, and it can be difficult to track down the lenders who are going to offer the best terms. A mortgage broker can look at your financial situation and reach out to the lenders who they know will probably offer you the best mortgage loan. This one thing can make it much easier to eventually land yourself with a mortgage that is going to be best for you.
Disadvantage: You may pay a fee for a mortgage broker's services.
Of course, mortgage brokers do not work for free; they charge for their services. The fee is usually percentage-based, which means they will charge a small percentage of the loan amount for their services. This fee is sometimes paid by the lender instead of the borrower, but it is not uncommon for brokers to charge the borrower and not the lender.
Perk: The broker will negotiate mortgage terms on your behalf.
Negotiation could be considered an art, and it is a business skill that not every average consumer is going to have. If the idea of negotiating with lenders to get the best mortgage terms is a bit unsettling to you, you will be pleased to know that the broker will do this on your behalf when they are working with you as their client. All the discomfort of going back and forth to come to the best agreement will be done without you present.
Disadvantage: You will have to take the time to pick the best broker.
Mortgage brokers are not hard to locate, but they are not all the same. Some will offer better rates than others, and some will have much more industry experience than others. It is best to ask around, talk to your real estate agent, and take your time to make sure you find the best broker for the job.
Make sure that you spend the time that you need to find a professional mortgage broker in your area.
Share3 July 2019
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