Article by – Vanessa Martin
Do you know the difference between a Mortgage Broker and a Mortgage Lender and what the advantages of working with a broker are? Well, there is a huge difference and usually the benefits to the consumer can be a major cost savings.
Let’s look at some of the top reasons why someone would go with a broker rather than directly to a lender.
You will have access to multiple lenders, Mortgage brokers have access to a wide network of lenders, including banks, credit unions, and private lenders. This gives you more options than if you were to approach one lender directly. A mortgage broker is a professional who specializes in mortgages. They have a deep understanding of the mortgage market, including various loan products, interest rates, and eligibility criteria. This expertise can be invaluable, especially if you’re a first-time homebuyer or if your financial situation is complex.
They will offer customized advice, Mortgage brokers work directly with you to understand your specific financial situation, goals, and preferences. They can recommend mortgage options that align with your needs, potentially saving you money in the long run. Experienced mortgage brokers have strong relationships with lenders. This can sometimes lead to better terms or rates that might not be available to the public. Additionally, if you have unique or challenging financial circumstances (e.g., self- employment, low credit score, or non-traditional income), a mortgage broker can help find lenders who specialize in working with borrowers in similar situations.
A broker can save you time and effort, shopping around for a mortgage can be time-consuming and overwhelming. A broker can do the legwork for you, comparing loan products, interest rates, and terms from multiple lenders to find the best options that match your needs and financial situation. When you shop for a mortgage on your own, each lender will typically perform a credit inquiry, which can temporarily lower your credit score. A mortgage broker can often check multiple lenders with just one credit inquiry.
Mortgage brokers often work outside of regular banking hours and can meet with you at your convenience. This can be especially helpful for people with busy schedules. They are there to guide you through the entire mortgage process, from pre-approval to closing. They can help you navigate any complexities and answer any questions that may arise.
So, if you are looking to purchase property soon a mortgage broker may be an excellent option to not just time but be that person who will negotiate pricing for you.