Making home buying easier – Should you use a broker to locate a lender?

Whether you’re shopping for a new mortgage loan or you’re refinancing your current loan, you will have to decide between working directly with a mortgage lender and hiring a mortgage broker. Especially when you’re new into the mortgage industry, you’re vulnerable to the scams of the shady mortgage lenders and therefore you need to make sure whether you’re taking the right decisions. Being a first time home buyer, it is tough to decide everything on your own and without the help of a mortgage broker. A broker is nothing but an intermediary between you and the mortgage lenders, who helps you find the best possible lender who can offer you the best loan in the market. One usually hires a mortgage broker with the hope of saving a few dollars here and there. Here are some reasons that you should consider while hiring a mortgage broker.

You get a wide variety of lenders: Although it is true that you can shop around among as many mortgage lenders as you want, but the reality is that you will remain restrained to the number of banks that you contact. If you take help of a worthy mortgage broker, you can be sure that they’re in contact with many lenders, though you should research the background history of the broker in order to ensure that he has your best interests in mind. An effective mortgage broker will have access to different mortgage programs; he will make you well-versed with the different alternative repayment plans which you can’t as an individual borrower.

You can better flexibility of execution: Once you make the mistake of choosing a direct lender, you’re forced to complete the entire process of home buying in a process that he finds right. But on the other hand, with the assistance of a mortgage broker, you will get enough control over the entire closing process. Your mortgage broker will serve as the mediator between you and the lender and will offer you enough flexibility to help you during closing times. There will be enough potential for paperwork and credit issues and can also assist you in locating a loan that can best match your needs.

You get affordable rates and costs on the loan: For most borrowers, the biggest benefit of working with a mortgage broker is that he can get a better deal for you on the loan. The mortgage broker has a broad range of contacts that can have access to different special programs which might be unavailable to a broker on a public basis. The mortgage broker may even price his fees into the interest rate of the mortgage loan or into the final closing cost, thereby letting you benefit from his services.

Therefore, if you’re a first-time homebuyer who is wary about the process of taking out a home mortgage loan, you can immediately get in touch with a mortgage broker. It is always better to get multiple mortgage quotes with the help of a broker, before you choose the one that best fits your needs.

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