If you are getting ready to buy a home, you have probably started thinking about getting approved for a mortgage. If you haven't already spoken with a lender, it is time to do so. One choice you are going to have to make is where to go to get the loan. You may talk to your bank's mortgage department, find a lender online or in the phone book, or you may decide to go with a mortgage broker. A broker does not handle the loan directly, but is the middleman between you and the lender. There will be a fee involved for his or her services. However, regardless of this fee, there are a number of benefits to using a broker instead of finding a loan on your own.
Experience, Knowledge, and Connections
One of the biggest benefits you will receive when working with a mortgage broker is their experience. They know all the lenders in the area and how they operate. In addition, they also understand all the different government programs available and what is needed to apply. Finally, because of all their experience and dealings with lenders and government agencies, they may be able to have some fees waived for you. Some lenders will only work through a broker, so you are limiting yourself from the get go if you choose to go it alone.
A broker does not fill out one application and wait for a response. Instead, he or she will take all your information, consider the different options available to you dependent on your financial situation, and apply to multiple lenders. If applications are needed for government agencies, the broker will complete those as well. While you could do this yourself, it will take you considerably more time to find the lenders and fill out all the applications. Due to the timeliness of using a broker, you will have the decision on your loan much quicker and can then choose from all those who have approved you.
There is no rule that says you must use a mortgage broker when buying a home or property; you can most certainly find your own mortgage. However, unless you have had many real estate loans in the recent past, you may not be aware of everything you could qualify for. A broker has the ability to find you the best terms and interest rates possible for your financial status, and the money you save on the loan itself will likely more than pay for the broker's fees.