What Is A Mortgage Broker And The Benefits Of Having One
A mortgage broker acts as a “middle person” between mortgage lenders and home loan borrowers. Therefore, brokers do not lend money. Instead, they bring available lenders and suitable borrowers together. It must be noted that the tasks undertaken can vary depending on the scope of the services the broker provides. The cost for the services will also vary for different reasons.
How a Mortgage Broker can Help You Buy a Home
The housing market is often saturated with both properties for sale and potential lenders. However, just as many houses are not for you, many loans are simply a bad fit. Lenders also acknowledge that not every potential borrower suits their business. A mortgage broker can make things must easier for both parties. In fact, brokers:
– Will look at your credit rating to see what loans you are eligible for,
– Will help you determine what you can comfortably afford based on your current budget/earnings,
– Are likely to know about and consider loans you otherwise would never have heard of,
– Ideally offer the best possible advice to save you time and money,
– Usually simplify the application process by gathering all the necessary documents and submitting them on your behalf.
On the other hand, they reduce the number of home loan candidates a bank needs to screen by bringing them potential clients who already qualify. Since the applications are also organized, this further speeds up the process. As a result, a mortgage broker can help you get a home loan much faster.
It is important to remember that a mortgage broker is not a loans officer. Therefore, being deemed eligible for a loan does not mean approval, your broker still needs to submit your application to the chosen bank. From there, the bank’s policies will determine if you are successful. Bear in mind as well that the broker’s services carry a fee, so be sure to check on this upfront.