If you’re looking to finance a new home, you may find the process rather confusing. One of the first decisions to make is where you’ll get the financing. There are many different avenues for seeking financing. The person dedicated to helping you weigh your choices and make the right decision is a mortgage broker.

Mortgage brokers work to secure financing for borrowers. They can help potential borrowers obtain financing or re-finance their home. Here are some of the reasons you might choose a mortgage broker to help you secure financing, rather than a bank.

Disadvantages of Working with a Bank

When you think about buying a home, you may first be inclined to work with a bank for your mortgage. People often go to a bank when looking for finance because they already have an existing relationship with a bank and it’s familiar.

Your bank can access all your information instantly, not just what you’re ready to show them, so if you have little in savings and poor credit, you may quickly be denied that mortgage. When you go to a bank, they will only offer you the limited range of rates and loan structures available at that bank.

If your bank does accept you for a loan, you might find the subsequent process to be challenging. There is a lot of paperwork and everything can feel very bureaucratic. You won’t have a representative there who understands the process and represents the borrower’s interests (that’s you).

Advantages of Working with a Broker

Many people assume a mortgage broker will be more costly. However, broker pricing is competitive with the rates you would see at a bank. Any fees you may pay to a broker are designed to be offset by the more competitive rates and loans a broker can achieve for you.

A mortgage broker does not represent a bank. They represent you, and they provide you access to many different loan providers so you can get the lowest rate and best features.

You can get markedly better rates than you could possibly expect from a bank, because mortgage brokers may also have access to wholesale rates. Generally, a mortgage broker will look at all the available options from banks and other lenders to ensure you get the very best possible mortgage. They can work out more complicated deals with their extensive knowledge of the available options and their connection to lenders.

When you work with a mortgage broker, there’re many reasons you’ll get exemplary customer care. Brokers are easier to communicate with and negotiate with to find the rate you want because they are a real person, not a company. The process is not bureaucratic, it’s personable. Brokers will use their expertise in their craft to make the complicated process of financing easier for you by completing all the paperwork and logistical components. They know which pieces of the process you need to complete, and what they can do for you or guide you through. Aside from getting you the best loan, they also help you cut through the red tape to get the solutions you need.

When you work with a mortgage broker, you want to be assured that they are well trained, experienced, and skilled for the task. Choose an established local mortgage broker and start finding the best loan for you today by discussing your options with them.