Why Use a Mortgage Broker? How They Save You Time and Money

| Justin Samuel

Buying a home can be exciting. But having to spend countless hours exploring mortgage programs, deciphering requirements, and choosing the best option can make the process less fun.

If you’re looking for an easier way to find a mortgage with good terms, then consider getting mortgage advice from a broker. 

So, what does a mortgage broker do versus a lender? While a lender is who gives you the loan, a mortgage broker who does the work of finding an appropriate lender.

Read on to learn about why to use a mortgage broker.

1. You’ll Have Someone Who Understands Your Situation Well

When you work directly with a lender, everything can seem like an impersonal transaction. Your lender might gather some basic financial information from you. But they might not take enough time to understand your needs and goals.

Someone like this mortgage broker will take time to understand your preferences for a loan program. They’ll also offer advice if you have credit trouble or struggle with a down payment. They’ll always be available for your questions too.

2. You’ll Get Access to the Best Loan Programs

Sorting through local lenders and their loan products can make you waste time. But a mortgage broker will do this work for you after they gather information about you and your finances. 

You can rest assured that your mortgage broker will recommend loan programs that you’ll likely qualify for and that come from credible lenders.

Even better, you can expect to save money since your broker will help get you the lender offering the best rates. You also benefit from the lower wholesale cost that brokers can access.

3. You’ll Save Time Sifting Through Loan Requirements

Getting a mortgage will require a detailed assessment of your finances. Loan programs can require different credit scores, down payments, debt ratios, and employment histories. 

A broker can look at your financial information beforehand and offer mortgage advice that will point you toward the right programs. They’ll also assist with prequalification.

You’ll also be more prepared to present documentation during the application and underwriting processes.

4. You’ll Have a Smoother Closing Process

Before you get those keys to your new place, you have to go through the ups and downs of the closing process. Having a mortgage broker can make things go more smoothly since you’ll have someone keeping you informed along the way. 

Whenever the lender needs documentation, your mortgage broker can help answer questions. If hiccups do happen during the process, you’ll benefit from your broker’s expertise. These benefits can help you close before or on the deadline.

Now You Know Why to Use a Mortgage Broker

So, do you need a mortgage broker? If you want help making the mortgage application process faster and easier, then you’ll likely find a broker worth it.

When choosing a broker, be sure to check out any fees they charge and ask them about their specific expertise. You can also speak to past clients they’ve assisted to make your decision.

Since you’ve now learned why to use a mortgage broker, go check out our other posts.