When you decide to buy a home, you are making the largest investment of your life. It is important to make sure that you pay attention to the details of your purchase. Using mortgage broker services offers a range of benefits that help you ensure that you explore all of your options and find the best possible terms and interest rates for your mortgage. Take a look at the top five benefits of using mortgage broker services.
1. You Have More Options for Your Mortgage
If you go to your bank, you only have the mortgage options that they offer. You will need to do your own research to find out how they measure up against other mortgages in terms of the interest rates and terms.
However, if you use mortgage broker services, the brokers will look at your goals and show you a variety of options. You can choose from mortgages with fixed rates, variable rates, and different terms, and you can find the one that best fits your lifestyle and your needs.
2. Your Mortgage Broker Will Negotiate for You
It can be hard to negotiate with lenders who are in the mortgage business. Most people don’t really know their bottom line, and some lenders act like you don’t have other options. When you work with mortgage brokers, they are professionals who will negotiate the best rates and terms on your behalf.
Lenders know that the mortgage market is very competitive, and they may offer rates that are exclusive to these brokers. This helps you get a better deal on your loan.
3. It Protects Your Credit Rating
When you work with a mortgage broker, you will protect your credit rating. You only have to apply for credit once, and they will use that score for any loans that you apply for.
If you apply for different loans on your own, each lender will get a copy of your credit report. This can actually make it more difficult for you to get a loan because it looks like you are credit-seeking, which can harm your credit rating.
If you plan to shop for your loan, you are better off using mortgage brokers so that you only apply for credit one time.
4. They Work with Self-Employed and Low Credit Buyers
If you are self-employed or have bad credit, it can be very difficult to qualify for a mortgage with a bank. They focus on your income and your credit report, and if you have an unorthodox financial history, they often decline your application.
A mortgage broker will have a lot of different types of lenders that they work with, and they will know how to help you find a mortgage that works for you. They can help buyers who have poor credit, no credit, have claimed bankruptcy in the past, or are self-employed.
When you are self-employed, banks make it difficult for you to qualify for a mortgage. They want to see direct deposit or pay stubs showing that you get paid at regular intervals.
You might make plenty of money, but the banks are stuck on their regulations. Mortgage brokers will have access to lenders who understand self-employed income and will qualify you.
5. They Have Flexible Schedules
Bankers tend to work during business hours when the bank is open. This may not be convenient for you. Many people work days and need to meet in the evening or on the weekend.
Mortgage brokers understand that and often see clients whenever they need to see them. They will help you get pre-approved on your terms so that you can start looking for your new home.