Have you ever wondered what exactly a mortgage broker actually does? If you’re considering a mortgage, using a mortgage broker may be your wisest borrowing decision! We explain what mortgage brokers do and why you shouldn’t go through a mortgage process without one.

What Is a Mortgage Broker?

Mortgage brokers work with borrowers to find the best loan options for their situations. They have access to a vast network of lenders and act as a liaison between borrowers and lenders.
Brokers are ideal for borrowers who want to minimize stress, save money, or have complicated situations.

Mortgage Broker

• Works with many lenders
• Has access to many loan products

Lender

• Provides a loan to purchase property
• May offer limited mortgage options

Should I Choose a Broker or a Lender?

Fortunately, you don’t have to choose between one or the other. A lender will still be involved if you opt to work with a broker. Going it alone may make sense for the borrower who doesn’t mind spending hours researching rates and products or has an existing special relationship with a financial institution.

The application and entire loan process may be significantly easier for most borrowers if you use a professional mortgage broker. For applicants concerned about getting a low rate, mortgage brokers can easily handle rate shopping. For borrowers with complicated income or credit, a broker may have access to options a lender might not offer directly to applicants.

Mortgage Brokers Save Borrowers Time

The tasks associated with applying for a mortgage can feel like a full-time job.
No matter the reason for your mortgage, home purchase, refinance, or otherwise, applying for a mortgage can be stressful. Having a professional mortgage broker by your side to help you navigate the process from start to finish can save a lot of frustration.

Because brokers have such detailed knowledge and experience, they know how to take care of the frustrating legwork and what to do to ensure your entire mortgage process flows as smoothly as possible.

The application process can be particularly confusing and stressful for borrowers with credit issues or complex employment situations. From ensuring you understand exactly what you need to provide to personally answering any questions you might have about each requirement, they’ll guide you through the process with their experience.

Brokers Have Access to Options Otherwise Unavailable

You’d be surprised how many mortgages aren’t directly available to you!
Many lenders only deal with brokers and do not take clients directly. This eliminates a lot of options for someone determined to find the perfect mortgage. When you partner with a professional broker, you’re much more likely to find a lender and loan product that is a solid fit for your situation.

Working With a Broker Can Save You Money

You shouldn’t have to spend money to borrow money.
We’ve mentioned mortgage brokers can save you time, but they can also save you money throughout the application process and life of the loan. Mortgage brokers can sometimes get standard fees like origination, appraisal, and application fees reduced or even waived.
A good mortgage broker will also take the time — and has resources — to research rates in depth. They’ll negotiate with the lender on your behalf for a competitive rate. A difference of 0.5%-1% could save a borrower thousands to tens of thousands in payments each year!

Complicated Situations Require Specialists

Applying for a mortgage is hard enough with a traditional job and perfect credit.
For applicants with less than perfect credit, gaps in employment, or self-employed, having a broker to guide you through the process is a smart decision. Experienced brokers have access to loan products for all credit and income types — some that you wouldn’t otherwise have access to.

Take The First Step: Pre Qualification

Whether you decide to go it alone, or work with a qualified mortgage broker, get your pre-approval early! Shopping for a new home can be overwhelming; knowing ahead of time how much loan you qualify for can narrow down the options and streamline your hunt.

If you’re ready to start the process with a professional mortgage broker offering personalized service, contact one of our mortgage experts today.