What is a Mortgage Broker and How Do They Help?
Mortgage brokers are financial professionals who assist borrowers in qualifying and securing a home loan. Their services range from searching for government-backed loans to helping you access equity in your house through equity release.
Mortgage Brokers Do Not Loan Money
A loan officer at a bank or other lender can only direct you to the loans their company offers. Therefore, they often only suggest a few lenders and it may be up to you to do your own research in order to find the most advantageous options.
Working with a mortgage broker provides several advantages over working directly with a loan officer, such as comparing more loan offers for you. Furthermore, they will assist in finding the ideal loan that meets both your needs and budget.
Brokers Can Help You Avoid Fees
Brokers typically have connections to various lenders and can negotiate the fees associated with a new mortgage, which could save you a considerable amount of money in the long run.
They Can Assist You Qualify For Special Loans
If your borrowing situation is unusual or you require an unusual type of mortgage, a broker may be able to assist in getting approved for the loan that meets your needs. They’re also able to streamline the application process so it takes fewer steps and is more convenient for you.
They Can Assist You with Refinancing Your Mortgage
A mortgage broker can assist you in refinancing your existing loan to reduce the interest rate or monthly payment. They may also assist in switching from your current loan type to another type, such as a fixed-rate mortgage, adjustable rate mortgage or interest-only mortgage.
They Can Assist You in Purchasing a Second Home
If you are looking to purchase another property, a mortgage broker is the perfect resource to find the ideal loan that meets your requirements and budget. They also provide guidance if you plan on buy-to-let, purchasing business premises or holiday homes.
They Can Assist With Remortgaging Your Mortgage
When your mortgage is up for renewal, a broker can help compare your current and new loans to see if there’s money to be saved by switching. They will also guide you in choosing a lender and explaining the process involved.
They Can Assist You Manage Your Fees
A mortgage broker will be aware of hidden fees, such as application and origination charges, which could help save you money on your loan. They also negotiate these costs on your behalf and often request the lender to waive them altogether.
They Can Assist With Refinancing a Borrower’s Mortgage
Mortgage brokers can assist you in re-financing your repossessed or foreclosed home, which may be difficult to do on your own. They’ll search for the best terms on your property which could save money on payments over its life expectancy.