The Benefits Of A Mortgage Broker

We've all heard the term, mortgage broker.  But what is a mortgage broker?  Well, essentially it is a professional whose job is to help you find the best mortgage by sifting through all the different options available to you.  This can be a big benefit for anyone feeling overwhelmed by the mortgage process, like a first time home buyer, especially if you're having a hard time figuring out which loan is best for you.

On the flip side, mortgage brokers aren't the best choice for everyone, so it is important to look at the pros and cons and educate yourself about what exactly mortgage brokers do, and what their fees are.  We have helped you take the first step by putting together some information on what you can expect when working with a mortgage broker.  Keep reading to learn more and click this link to read the full article.

Benefits of a mortgage broker

Some borrowers might find it easier to just visit their local bank for a home loan, but that can mean missing out on several key benefits that a broker can provide. The primary benefit boils down to choices: While a bank can offer only its own proprietary products and a single interest rate, a mortgage broker acts as a clearinghouse, shopping multiple lenders simultaneously to find different terms and rates on your behalf.

Here's how this unique professional can pay off for you:

• Savings: “Because a broker works with multiple lenders, they are able to shop all of those lenders for the best price,” points out Nathan Pierce, a mortgage specialist at Advanced Funding Home Mortgage Loans, in Salt Lake City, and a director with the National Association of Mortgage Brokers. This allows you to reap the benefits of lower interest rates and fees.

• Convenience: J.D. Power’s annual Mortgage Origination Satisfaction Study found that customers who considered two or more quotes had a higher satisfaction score than those who got just one. Yes, you can do this on your own, but reviewing and applying to each lender yourself can be a hassle. Brokers streamline the process and do a lot of that legwork for you. For instance, you can fill out just one loan application rather than many, which the broker then distributes on your behalf. And because brokers are pros at acting as liaisons between lenders and home buyers, they often offer better service than working directly with a lender (or lenders). If you have questions you want answered objectively and in plain English, brokers can help big-time.

• Special-case scenarios: Mortgage brokers can be a godsend if you're a less-than-ideal loan candidate. For instance, if you have spotty income or a poor credit score, this might make it more challenging to find a great loan, or any loan at all. Brokers, however, know which lenders offer more wiggle room on their standards, so if you're worried your finances aren't in good shape, this professional could help rescue you.