If you're like most people, you probably don't have the funds on hand to pay for a house with cash, so if you want to purchase a home you will need to get a mortgage loan. When you need a mortgage loan you have two choices-- you can find a lender to work with on your own, or you can choose to work with a mortgage broker. A lot of people opt to work with a mortgage broker for a number of reasons, such as:
Shop for Mortgages on Your Behalf
Finding a mortgage with the right terms and interest rate can be a challenge, as well as quite time consuming if you don't have a lot of knowledge or experience dealing with mortgages. When you work with a mortgage broker, he or she will take all of your mortgage application information and financial information and submit it to different lenders on your behalf for pre-approval. When you're pre-approved for mortgage loans from different lenders, you and your mortgage broker can compare the loans and choose the best one for your situation.
More Personalized Service
A bank mortgage loan officer may have numerous clients going through the mortgage loan process with the lender that he or she works for. As a result, it is not uncommon to have a little more difficulty working with a bank loan officer and communication may not be easy. On the other hand, a mortgage broker does not earn a commission if your loan does not close. Thus, many mortgage brokers give very personalized service to their clients and work hard with them to make the mortgage loan process easier so their are no problems and everything goes through on time.
Access to a Variety of Loans
While most people know that major banks offer mortgage loans, there are other lender options that people may not have access to. There are some mortgage lenders that exclusively work with mortgage brokers. If you try to find a mortgage loan on your own, you may miss out on loans from lenders who may have terms and interest rates that are more favorable than those offered by big banks.
Negotiation with Lenders
Mortgage brokers are focused on helping you get the best mortgage loan possible. An experienced mortgage broker will be very knowledgeable with the entire mortgage process and may be able to negotiate with the lender on your behalf to have some of the fees waived. For example, a mortgage broker may be able to convince the lender to waive application, appraisal, and origination fees, which can save you a lot of money.