A Mortgage Broker’s Role
When purchasing a home or property, there are many questions to be asked. But the one that may jump to the forefront of your mind may be “what is a mortgage broker’s role?” Knowing what a mortgage broker does can instill more confidence in wanting to use one.
What is a Mortgage Broker’s Role?
A mortgage broker is a licensed professional in the mortgage industry. It is their job to help you find the mortgage product that fits your financial needs. This is different from a realtor, who helps you search for and find the property that you want.
The mortgage broker’s role is to act as more than simply a middleman. They are a quarterback of sorts for the financing process. They pass the ball between you, the borrower, and whatever lender you wind up with.
Mortgage brokers do more than simply get you a mortgage for your home. They can also help you:
- Get access to equity that you may have in your home
- Refinance a current property
- Purchase potential investment properties to grow your worth
- A litany of other tasks that can have a major impact on your financial well-being
You may be thinking “can’t I do this myself? After all, I can go to the bank myself.” That may be true, but the bank is only going to offer you their products. They won’t go down the street to the competition to find a mortgage product that suits your needs better. That is a mortgage broker’s role.
The Advantages of a Mortgage Broker
Without a doubt, the biggest advantage of a mortgage broker is their experience. The average mortgage broker deals with dozens of lenders and hundreds of different mortgage products. A mortgage broker’s role is to be familiar and well-versed with those products available from each lender.
Where a mortgage broker comes to be a great advantage is for those with less than great credit. Since they have access to so many lenders, they are more likely to be able to find a lender that can help. This is in contrast to banks which may turn you down or offer you a higher rate than you are comfortable with.
Most of all, using a mortgage broker is protecting yourself. You may think that you have found a great deal, but your broker will be able to know for sure.
A mortgage broker will also typically work without compensation from you. That’s because a mortgage broker is usually paid directly from the lender, which can mean getting unbiased help. There are some lenders that offer more compensation, so you will have to find a broker that is honest and will put you ahead of the potential finder’s fee.
A Mortgage Broker’s Role is to Save You Money
When you apply for a mortgage on your own, it’s up to you to apply with each lender. When you use a mortgage broker, they will focus on the ones that are best for you. This saves you the time and hassle and will also save your credit score from being checked by too many lenders.
Their role is to negotiate for you. They have discussions with the various lenders out there to help you get the very best mortgage for your needs. The ultimate goal is to find a mortgage at the best rates and that is exactly what a mortgage broker’s role is.
If you had any doubts about using a mortgage broker, now you know what they are here for. And if saving time and money while getting the best mortgage is what you’re after, a mortgage broker is for you.