If you’ve never bought a house, sold a house, or seen a house (this one’s quite unlikely), you probably have a pretty good idea of what a real estate broker does.
But what about the mortgage broker? Many people have heard the term and know they exist, but don’t know what exactly they do, and more importantly, if they need to work with them. So if you’re wondering what the role of the mortgage broker is, and what the advantages are of hiring one, let’s break it down.
What a Mortgage Broker Actually Does
The mortgage broker is essentially the liaison between you, the borrower, and the bank, the lender. When you choose to work with a specific broker, he or she will gather all of your information—income, tax returns, credit scores, etc.—and will help determine what you can afford and what type of loan is best for you.
The broker will work with you throughout the entire process and will communicate with the lender for you, acting in your best interest, while keeping you informed and avoiding any missteps along the way.
Advantages of a Mortgage Broker
Unless you are employed in the real estate industry or have dedicated your life to a mortgage-info hobby, you can’t be expected to know everything there is to know about current mortgage rates, available loans, and the entire application process. The broker, however, can. It’s his or her job.
6 Advantages from Working with a Mortgage Broker:
- [pullquote position=”right”]Brokers will shop around and talk to several banks at once[/pullquote], finding the best one for you. If you’re on your own, working directly with a retail lender, that is the only bank you’ll be in communication with.
- Brokers can get you lender credits, lowering your out-of-pocket costs.
- Brokers save you significant amounts of time, performing all of the grunt work for you.
- Should you be declined, a broker will go to another bank. On your own, you have to start all over again.
- [pullquote]Brokers can get competitive rates, rates that might even be lower than those offered by retail banks.[/pullquote]
- Brokers must be licensed and regulated; as long as you’re working with a qualified, licensed broker, you can rest assured that he or she is experienced and meets all requirements.
In the end, choosing to work with a mortgage broker can save you a lot of time, while ensuring nothing goes wrong in the complicated application process. You also have the added benefit of access to more banks, and possibly better rates.
Just be sure to shop around, and choose a broker with whom you feel comfortable. If you aren’t convinced that one is the right fit for you, you have every right to walk away and find someone else.
Or stop shopping: If you’re buying or selling a home in the Boston area and are in need of a mortgage, or have any mortgage-related questions, contact me now for advice.