When it comes to most homebuyers, trying to get finance is the most challenging aspect of buying real estate. The vast array of mortgage products and lenders can confuse even seasoned buyers. The entire process of getting a home loan is simplified by working with an experienced mortgage broker.
What Do Mortgage Brokers Do?
Mortgage brokers are effectively the intermediaries between borrowers and lenders. They are experts when it comes to home loans and they maintain relationships with a range of banks, credit unions and other lending institutions. Mortgage brokers are not employees of any particular lender. Rather, they work on your behalf to find the most suitable financing options.
According to the experts at Mortgage Maestro, based out of Denver, mortgage brokers’ primary role is to save you time and frustration. They handle all the legwork of researching loan products and lenders for you. Decent brokers have access to countless mortgage programs across a vast range of banks and lenders. This allows them to offer you many more options than going to a single lender directly.
Brokers Are Your Loan Advocates
Another benefit of using a broker is that they effectively become your representative throughout the home-buying process. They will have your very best interests at heart as their main goal is to help you obtain financing quickly and smoothly (which ultimately benefits them as well).
He or she will advise you on various programs and the loan amounts you might qualify for based on your financial situation. They will guide you in gathering all paperwork and documentation for your application. Brokers also coordinate between lenders, real estate agents and title officers on your behalf so that the transaction stays on track.
Perhaps most importantly, a broker acts as your negotiator. They leverage their relationships with lenders to negotiate the most competitive rates, fees and closing costs on mortgage products that meet your needs. This advocacy helps ensure you get optimal financing terms.
Finding the Right Broker For You
Mortgage brokers range in size from solo practitioners to large firms. At the end of the day, you want to find a broker who is ethical and knowledgeable and who will take the time to understand your situation and goals. Their level of experience and professional relationships greatly impacts the types of loans they can access for you.
Ask close friends or family members who they used and would recommend. Look for brokers who are members of the National Association of Mortgage Brokers or the National Association of Licensed Mortgage Brokers. You can also search online reviews to get a sense of customer service levels.
Interview several brokers before deciding. Ask about their experience, the loan programs and lenders they work with, and the support services they provide to borrowers. Going with an established full-service broker typically provides the greatest value.
Getting Pre-Approved
Early in the home buying process, your broker will pre-approve you for a mortgage. Pre-approval letters specify the loan amount and terms for which you qualify. This shows sellers you are a serious buyer who has the financing to complete a purchase.
Get pre-approved for a loan amount that offers some wiggle room over your target home price. This allows you to bid competitively on houses and negotiate from a position of strength. Pre-approval sets you up for mortgage success.
Conclusion
Owning a home remains a big part of the American dream. Finding the right loan though can be challenging. An experienced mortgage broker simplifies the complex process of obtaining home financing. They have access to an array of loan products and lenders to find you optimal terms. Trusting a reputable broker to guide your purchase leads to mortgage success.
