Mortgage broker services can be invaluable to first-time home buyers and those searching for mortgages that meet their financial goals. Trained to assess a borrower’s current situation and offer suggestions on how to increase their chances of approval, these professionals collect financial documents and submit preapproval applications on behalf of borrowers.
They can advise you on the type of mortgage that best meets your needs and objectives, as well as provide tips for preparing your application and sending it off for review. Doing this saves both time and money in the long run by eliminating much of the legwork you would otherwise need to do on your own.
A broker can search for loan products from multiple lenders, providing you with options you may not be aware existed or aren’t offered by your local bank. This saves time and effort and could result in significant savings over the course of your mortgage.
Brokers often have access to special non-qualified mortgage (non-QM) loan programs and other options you won’t be able to find on your own. This can be especially advantageous if you’re trying to buy a home in an active housing market and need to close quickly.
They can assist a buyer who has been rejected by their local lender. Through their connections with various lenders, they may be able to save your deal by switching you onto another lender that accepts your documents and has a faster closing time than the one your local bank offered.
Mortgage brokers are also available to assist borrowers who are having difficulty making their monthly mortgage payments or have poor credit scores. They provide advice and recommendations that could save borrowers costly fees or help them out of a difficult situation.
Mortgage brokers offer a diverse selection of lending solutions, such as government-backed loan programs and private lenders who don’t typically work with traditional banks. They may offer various interest rates and loan types too, from conventional fixed rate mortgages to jumbo loans and revolving credit lines.
Brokers can often save you a considerable amount of money over the course of your mortgage, particularly if you’re searching for a home in an expensive area or one with low property values. This could reduce your monthly payment by up to 20% and increase your net worth by eliminating debt or saving money on interest costs.
According to your state, mortgage brokers may need to register with your state’s financial regulators in order to conduct business. This makes it easier for you to verify the qualifications and background of a broker before beginning work with them.
They offer a more personal touch than loan officers at major retail banks, as they only work with select borrowers one-on-one and don’t receive payment until your loan is closed. This makes them an ideal option for first-time homebuyers who may require more guidance than what a large bank could provide.