Now is a great time to consider buying a home. Interest rates have reached unprecedented lows in recent months, making the costs of undertaking a mortgage incredibly attractive.
With all of the information available to seasoned and first-time home buyers, it almost seems like all mortgage providers will give you a great rate, making it virtually impossible to secure a bad deal on a home loan right now. Popular thinking would have you believe that you could just reach into a hat, choose the name of any bank or lender, and end up with a great deal.
Unfortunately, that’s not usually how it goes. Taking that kind of risky approach to something that will impact you and your family for years to come borders on irresponsibility.
Tapping into the skills and experience of a qualified, independent mortgage broker can be one of the greatest resources you can use during the homebuying process. And great mortgage brokers won’t cost you money—they’ll save you money!
Read on for ten reasons you should consider working with a mortgage broker.
- Working with a mortgage broker is easy. You already have enough to do throughout the process of buying a home. A mortgage broker will help to take the home loan search process off of your hands. As an independent, certified professional, they’ll make sure that your application process goes smoothly.
They will do much of the tedious, difficult groundwork for you. With that taken care of, you can quickly determine what options are available to you and select the best loan for you and your unique set of circumstances.
- Mortgage brokers have lots of experience. They work with home and investment loans all day, every day, so they know them thoroughly. You can expect that a typical mortgage broker helps hundreds of clients secure loans each year, so they know what they’re doing and how to find the best deal for you.
Because they know what to look for, mortgage brokers can quickly start to understand your particular situation and help you find the right home loan for your circumstances. By working with a mortgage broker, you have the advantage of access to years of knowledge of mortgage loans and terms. It’s great to have an expert in your corner.
- Mortgage brokers offer tremendous convenience. Thanks to a certain level of independence, mortgage brokers can usually accommodate your schedule. Whether you work long hours or need to meet at a specific location on your way from your last appointment, they can generally make it work. This flexibility can save you a bunch of time and hassle on top of the time that they can already save you by streamlining the selection process.
- Mortgage brokers offer access to the most options. It can be tempting to limit your search options to familiar lenders, like the bank that you deal with regularly. But in today’s highly competitive climate, there’s no reason to do that.
With the tools and relationships at their disposal, mortgage brokers are positioned to expand your search options. They have the ability to quickly comb through hundreds of home loan options from dozens of different lenders.
This access means that you can get the benefit of sifting through hundreds of opportunities from so many sources without doing any of the added legwork yourself. You can easily capitalize on the market offerings in their entirety so that you’re assured of securing the best mortgage.
- Mortgage brokers can be great teachers. Of course, a good mortgage broker will walk you through what needs to be done to get you the best loan, but a great mortgage broker will take you under their wing throughout the process. They will happily teach you about what to expect every step of the way and explain the financing process to you in terms that you can understand. They’ll help you learn to identify marketing trends and explain the process of legally transferring property, too.
A great mortgage broker will give you tips for dealing with real estate agents based on their experience that you can carry on into your house hunt. They can set clear and realistic expectations that will help your agent find the home that’s right for you. Thanks to their expertise, they are well-equipped to educate and inform you about this process. Teaching you lends added comfort throughout the process and gives you a great resource of information if you ever find yourself looking for another mortgage in the future.
- Mortgage brokers can help you speed up the process. Consider mortgage brokers like your keys to the fast track. Current real estate markets are relatively flat, with a large number of buyers clamoring for few homes on the market over the past several months.
They are well-suited to manage this situation because of their excellent working relationships and established reputations. Generally, working with a mortgage broker will shave a few days off of the application process compared to having you attempt to get things done on your own.
- Mortgage brokers are there for you for the long haul. One of the crucial traits of a great mortgage broker is their relationship-building abilities. While it’s important to build and maintain relationships with banks and lenders, your mortgage broker will also work to build a relationship with you.
Expect that they will be with you as you secure a home loan and well into the future. If circumstances change, for example, and they think that you might be able to get a better deal elsewhere, they’ll let you know and help you get it done.
If you decide to refinance or buy another home somewhere else, they are ready to help with that, too, so you won’t have to start over again. Anticipate that you’ll be able to pick up where you left off.
- Mortgage brokers have the right tools for the job. They have sophisticated systems, including loan rate calculators, to streamline the mortgage application process to save you time and energy.
You can certainly go to any lender’s website, jump through all of the hoops, and cross your fingers if you’d like. But if you have any unconventional circumstances, like a low salary, single income, current unemployment, or anything outside of fairly ideal circumstances, you may be rejected. If you decide to apply to another lender, your credit report will show that an inquiry has been made, further hindering your chances.
A mortgage broker knows the ropes and can help you navigate these systems based on what you bring to the table combined with their experience and understanding. Their software will build a profile of you, your financial situation, and what you’re looking for.
Then they can determine what loan products are available to you and what you should expect as far as lending requirements. If you need to improve certain areas before you have a successful application, they’ll let you know. This way, you’ll have a pretty good idea of what you can borrow and how likely you’ll be to get your home loan before you potentially injure your credit history.
- Mortgage brokers can help clear things up for you. There are plenty of opinions regarding home loans—everyone seems to have their unique perspective and limited experience. You can also seek out your information or save yourself time, effort, and headaches by counting on a mortgage broker to separate fact from fiction and make sense of what you need to know to get the best mortgage for you.
They can help you understand terms like offset or overdraft that can be thrown around through the home loan application process. They can help steer you in the best direction as far as lenders’ mortgage insurance or low-doc issues are concerned, so you don’t waste time in an uncomfortable sort of limbo with inaccurate information.
- Using a mortgage broker is free. Here’s the clincher—you can tap into a mortgage broker’s expertise with no money out of your pocket!
All the other reasons listed above point to the time, money, and effort you’ll save, plus the ease of relying on a mortgage broker’s knowledge and experience. Since all of that is yours for free, there’s no good reason why you shouldn’t use one.
Lenders pay mortgage brokers a commission at the close of every transaction. Even better, these commissions are highly regulated, so there’s no benefit for them to recommend any product or lender above another. These protections ensure that you receive the best deal.
Find The Right Mortgage Broker For You
Mortgage brokers are the link between buyers and lenders, and can substantially improve your quest for the perfect mortgage. They are skilled at navigating a competitive field, and their involvement can save you precious time and money, all without any additional costs to you.
Here at A and N Mortgage, we have a team of experienced mortgage professionals who are eager to help you find the right loan product and secure funding with the best terms.
A and N Mortgage Services Inc, a mortgage banker in Chicago, IL provides you with high-quality home loan programs, including FHA home loans, tailored to fit your unique situation with some of the most competitive rates in the nation. Whether you are a first-time homebuyer, relocating to a new job, or buying an investment property, our expert team will help you use your new mortgage as a smart financial tool.