If you’ve never heard of a mortgage broker before, then he’s a little nugget of information for you. These financial experts are typically tasked with comparing interest rates, finding out about the fairest home loan deals proposed by banks and negotiating with lenders to save their clients a little bit of cash. Over the past few years, mortgage brokers have been popping up left, right, and center – but you might be wondering what it is about these home loan experts that makes them so appealing.
Well, the first thing that you need to know is that it isn’t an obligation to use their services – just a suggestion. In fact most financial advisors and consultants will recommend that home buyers, especially those embarking on a first time purchase, consider using them. But why exactly? Here’s a closer look at 5 reasons why we feel hiring a broker can be so beneficial and why you might want to think about using one for your next mortgage application!
1 – The ability to compare interest rates
Rates of interest are those irritating little fees that banks add on top of your monthly repayments to make sure that they turn a profit. Most are governed by a countries’ federal bank – but that doesn’t mean that individual lenders can’t pick and choose how closely they conform to these guidelines. Where a broker comes in handy is in their ability to rapidly compile information on what different banks propose, and then compare the rates to find the fairest on your behalf.
2 – The potential to negotiate with banks on your behalf
Let’s imagine that you find a fantastic interest rate from a pretty good lender – but one or two of their terms are a little bit unfair, or leave something to be desired. A broker can step in, have a chat with any contacts that they have at the bank, and then try to settle on fairer terms to better suit your financial needs.
3 – Saving you money
One of the biggest draws of hiring a mortgage broker is their ability to save their clients a bit of cash. How do they do this you ask? By comparing the fairest deals out there, of course. Most brokers will get to grips with the varying terms proposed by banks, identify the most beneficial options, and then allow you to choose from the most affordable solutions available.
4 – Taking the stress out of your mortgage application
You might not know this, but there are literally thousands of brokers that specialise in handling a mortgage application from the ground up. Some can help you to organize your paperwork ready for a submission, while others will take your application straight to a bank on your behalf. In any event, you could consider your stress halved at the very least by not having to deal with those intimidating lenders.
5 – Helping you to organize your finances
Some brokers offer extra services that relate to organizing your financial documentation ready for an application. If you have paperwork all over the place, if you’re keen to apply for a home loan in the near future, or if you simply don’t know how to properly prepare your financial data – a good broker can go a long way.
And there you have it, 5 benefits of hiring a home loan broker that could help you to maximize your chances of being approved for a mortgage.