Do I Need A Mortgage Broker?
What Is A Mortgage Broker?
If you are thinking about buying your first home, you have probably stated looking into different mortgages. The options can easily be overwhelming and more and more questions start to arise during the process. How much can I borrow? How much deposit do I need? Which bank offers the best interest rates? This is why many people in that situation consider hiring a mortgage broker. A professional mortgage broker like the specialists from Newbridge Home Loans helps you find the right home loan for your individual situation, takes care of the paper work and holds your hand during the entire process. Being experts in the market they gather information about your specific circumstances and the suggests lenders that match your needs. After that, your mortgage broker will help you with the application process to make sure you will get pre approved as quick as possible.
What Exactly Does A Mortgage Broker Do?
Basically, a mortgage broker can be seen as a middle man between you and the bank. Whether you need to refinance a home loan or you are looking for a quick pre approval or you home loan It is their job to take a close look at you financials to then get an impression of your overall creditworthiness and borrowing capacity. This enables them to find the right loan for you. The next step is to walk you through the different options you have and explain the pros and cons of every single one. Usually, a mortgage broker works together with many different financial institutions, however, they might not work with all available lenders so that is something to keep in mind.
What Are Advantages And Disadvantages Of Hiring A Mortgage Bro
If you are not familiar with finances and the process of buying a home, it could definitely be beneficial for you to hire a mortgage broker to avoid confusion and save money by making the best possible deal. For example, if you are a contractor or self-employed, home loan applications can likely get complicated so it would be advantageous to have a professional by your side who can help you.
When choosing your mortgage broker, it is important to check whether the broker you want to hire has the required experience and expertise to take on your case. Their selection of lenders might be limited, which is why it is not guaranteed that you will get the best option on the market as education and qualification levels vary between different brokers. Additionally, dealing with a mortgage broker and waiting for them to communicate with the lender might be more time consuming than dealing with the banks yourself.
What Should I Ask My Mortgage Broker?
There are a few questions you should ask your mortgage broker to make sure you are choosing the right person. One thing you should check is definitely whether they are licensed to provide the services they offer you. That can either be done by asking the broker in person or doing an online research.
Another question you should ask is the number of lenders they are deal with. In the case, the more the better.
You should definitely check how much their fees and commissions are to see if it would be worth it for you or if you will end up spending even more money. While you do that, you should also double check what the borrowing cost will be.