Should You Use a Mortgage Broker?

should you use a mortgage broker

There are many decisions you have to make when buying a home, never mind trying to choose the right property for you and your family! One thing a lot of buyers can run into difficulty with is trying to figure out a mortgage that suits their situation perfectly.

Sifting through all the mortgage offerings out there is an arduous task. You need to find one that will serve you well over the years, and then you have to prepare the application papers. If you’re not experienced and knowledgeable with how the process works, you could end up doing it a few times over before being successful.

A mortgage broker can help speed this process up for you, pinpointing the correct loan for your needs and helping with the lodging process. Today we’re going to look at what a mortgage broker is and what the benefits of using one are.

What is a Mortgage Broker?

A mortgage broker is a middleman, an intermediary between loan providers and home buyers. A fully-licensed professional, they’re basically a go-between with experience and knowledge in the mortgage space, which they use to successfully connect you with a home loan from a bank or lender.

The broker will need to have an in-depth understanding of your own finances in order to suggest appropriate home loans. There will be a meeting, or more, to determine your borrowing capacity and what your needs and goals. With that information the broker can find options that suit your situation.

What are the Benefits of Using a Mortgage Broker?

As in any process in the finance world, its often easier to lean on the knowledge of professionals rather than try and undertake certain processes yourself. It’s no different with mortgage brokers. Using one will bring a number of benefits, including:

Saving you time and legwork: brokers have all the relevant information on various lenders, interest rates and anything else relevant to your home loan process. This can save you many hours of research and familiarisation. They will also facilitate the application procedure, guiding you with the forms and paperwork.

– Mortgage brokers have better access: they can be the gatekeepers to a wide range of loans that you wouldn’t otherwise have been able to apply for. Some lenders exclusively use brokers to distribute their loans and will usually offer better rates too through the broker.

Experience: A competent mortgage broker will be able to assess your situation and match it to the current economic climate and real estate market successfully. Their insights will help you decide what you can afford to borrow, and how likely you are to be approved.

Cost Savings: Brokers can steer you away from mortgages with high fees built in. They can also find you the best interest rates and help you manage the costs as you move forward in the process.

How to Choose a Mortgage Broker

As in any industry, there are different brokers to suit different situations. To find the right one for you, there are a number of channels you can take:

– Get a referral from your real estate agent: Agents like the Henry Wong Team® work with mortgage brokers day in and day out. We have a good understanding of the industry and the suppliers in it, and most agents would be happy to pass on the details of a broker they know will do a good job.

– Recommendations from friends or family: People who have been through the process before you will be able to give you a candid opinion on whether the broker they used was any good. Their opinions are particularly valuable, because they will give you honest details about professionalism and personality that you wouldn’t necessarily find anywhere else.

Online reviews and social media: The longevity and success of any serving professional is easy to deduce by looking at their online profiles. Reviews on social media and on their website will give an idea of how they’ve performed for other clients. Always have a look at their presence on the web and ensure it’s a positive one.

If you have any questions about mortgage brokers and what they do, or anything about real estate in general, please get in touch with The Henry Wong Team®. Henry would love to have a chat about mortgages, selling houses and the current state of the real estate market.