When shopping for a mortgage, many home buyers enlist the services of a mortgage broker. This is to find them the best terms and rates. Since the real estate market crash in 2008; however, the business practices of brokers have come under scrutiny. The question of whether they are acting in customers’ best interests has been raised. Working with an experienced, competent mortgage broker can help you find the right mortgage. Thus, here are 3 advantages that you will have when working with a mortgage broker.
Mortgage brokers have regular contact with a wide variety of lenders, some of whom you may not even know about. A broker also can steer you away from certain lenders with onerous payment terms. Terms that may be buried in their mortgage contracts. That said, it is beneficial to do some research of your own before meeting with a broker. An easy way to quickly get a sense of the average rates available for the type of mortgage you’re applying for is to use a mortgage calculator. Tools like this will let you compare rates easily and provide you with extra knowledge when assessing a mortgage broker’s credibility.
Some lenders work exclusively with mortgage brokers and rely on them to be the gatekeepers to bring them suitable clients. You may not be able to call some lenders up directly to get a retail mortgage. Brokers may also be able to get special rates from lenders due to the volume of business generated that might be lower than you can get on your own.
Several different types of fees can be involved in taking on a new mortgage or working with a new lender, including origination fees, application fees. In some cases, mortgage brokers may be able to get lenders to waive some or all of these fees which can save you hundreds to thousands of pounds.