Often undervalued or sometimes completely overlooked, a mortgage broker is someone whose importance while investing in a home has remained under scrutiny for some time now. A mortgage broker is mainly an individual who acts as a middleman between the borrower/homeowner and the mortgage lender, usually the bank. Therefore, the broker maintains direct communication with both parties, ensuring a suitable compromise is reached, be it with regard to purchasing a mortgage or refinancing.
Making use of mortgage brokers can be highly beneficial for an aspiring homeowner, although the current economy and real estate market have dissuaded several from employing these services. However, the advantages far outweigh any disadvantages, proving beyond doubt that a broker can only help you:
- 1. Saves you extra legwork: While you must do some research on your own, especially when it comes to picking a mortgage broker, it remains a fact that most brokers can alleviate the stress when it comes to picking a lender: owing to a large number of contacts brokers have, they can help you pick a lender most suitable to your needs, and who will benefit you most. They can also help steer you away from lenders who have certain hidden, and not very beneficial clauses in their contracts.
- 2. They might have more access: A number of lenders function exclusively through mortgage brokers, such that they won’t be available for a retail mortgage directly. Brokers often match these lenders with suitable clients, and might also be able to get special rates from these lenders.
- 3. You may be able to save some fees: Mortgage brokers might be able to waive off certain fees off lenders. In other cases, you will save up on other fees such as application fees, appraisal fees, and the like, which will be included in the broker’s fees, saving you several dollars.
Of course, before you skip down to the nearest broker, it is advisable that you do your research and picks one who suits your needs best – compare prices, use a mortgage calculator, and zero in on one you may think best.