Should I Use a Mortgage Broker?
Read on to learn the answer to one of the most asked questions when considering buying a house: Should I use a mortgage broker or not?
In 2019, the average cost of a house in the United States is $226,800.
Can you afford to shell out this sum today? If you’re like the average American, raising this amount in cash is hardly possible. You’d have to come across a windfall to buy the house.
Fortunately, mortgages exist so that you don’t have to stress about affording a home. As long as you have a verifiable source of income and your credit score is in the green, you can secure a mortgage.
However, the home loan market is awash with mortgage companies. You’re probably asking, “Should I use a mortgage broker or find a lender on my own?”
In this article, we’re exploring whether hiring a mortgage broker is worth it.
A Mortgage Broker Can Get You the Best Deal
As soon as you start searching for a mortgage loan, you quickly realize that there are hundreds of potential lenders, each offering a mortgage facility with different requirements.
To find the best deal, you’d have to scrutinize what each company has to offer. And since you don’t really know how to tell a good offer from an excellent one, you could end up making costly mistakes.
A mortgage broker takes the guesswork out of your search. This professional knows who offers what in the market. They’ll examine your financial situation and help you find a suitable lender within a short time.
In other words, you get a good deal and save time.
A Broker Enhances Your Chances of Getting Approved
A mortgage application has two steps: preapproval and approval.
Preapproval means you can get a mortgage loan of up to a certain amount, so you know your price range when shopping for a house. Approval means you have a mortgage loan and you can proceed to buy the house.
Some borrowers assume preapproval automatically means they’ll get the final approval. On the contrary, it’s not uncommon for mortgage applications of preapproved applicants to be denied. This can happen to you, especially if your financial circumstances change negatively after the preapproval.
However, when you have a mortgage broker on your team, you’ve got greater chances of getting approved. In addition to making the application for you, your broker will advise you on how to safeguard your financial and credit history before you’re approved. Find out more about the various ways a mortgage broker can assist you.
Your Mortgage Broker Could be a Crook!
Finding a reputable mortgage broker can be just as hard as finding a good deal on a mortgage. This is because there are fraudsters posing as brokers, both offline and online.
If you don’t do due diligence, you could end up giving your personal and financial information to a scammer. Some will offer to help you get an attractive mortgage loan — often with rates that are too good to be true — but only if you pay them a fee or commission. Stay away from such brokers.
Should I Use a Mortgage Broker? There’s Every Reason To
It’s understandable that you are asking, “Should I use a mortgage broker or not?”
Buying a house is a massive financial undertaking, especially now that you’re buying through a mortgage. You want to get the best possible deal and gain as much information as possible about the application process.
A mortgage broker will give you that. You just have to be careful not to end up with a shady or fraudulent broker.
Stay tuned to our blog for more tips and insights on homeownership.