Thinking about buying a home this year? If so, well it will likely come as no surprise to you that becoming a homeowner can be a very expensive venture. Not only is buying a home a huge financial undertaking, it can also be extensive by nature, revealing a series of hoops you’ll have to jump through.
When it comes to securing a mortgage, this can also be a challenging and overwhelming process. Fortunately, there are individuals that exist to help guide mortgage-goers through the necessary steps of obtaining a home loan and ultimately the purchase of their new home – they are known as mortgage brokers.
If you are beginning your journey towards becoming a home owner and thinking about using a broker, here are 3 ways a mortgage broker can help you save money.
1) Brokers Can Help Borrowers for Free
Perhaps one reason why individuals may not want to rely on the help of a mortgage broker has to do with the fact that they think they will have to pay additional money for their services. Actually, however, there are many brokers who do not require these types of fees.
In fact, many mortgage brokers will offer their services for free of charge and are ultimately paid by a lender when a mortgage is approved for the home owner. In this respect, if you do want the support of a broker, keep in mind that there are many of them who help your case, while at the same time costing you absolutely nothing.
2) Brokers Can Help Borrowers Save on Fees
Fortunately, there is yet another way that a mortgage broker can save you money. In this instance, while assisting you with the mortgage progress, brokers can help you save on fees.
The reality being that establishing a new mortgage typically requires a variety of upfront costs, ranging from application fees, orientation fees, as well as appraisal fees. As you can imagine these fees can quickly add up – even totalling thousands of additional dollars.
As a result, having a mortgage broker in your corner can also benefit you financially as in many cases it is commonplace for brokers to have the ability to have lenders waive some or all of these fees.
3) Brokers Can Help Borrowers Access Home Loans (as well as more favourable terms)
Last but not least, a mortgage broker can help you with the most important part of the process, finding and securing a home loan altogether. Not only can a broker assist borrowers find a mortgage, they can also use their efforts to help those with bad credit.
As you are also probably aware, those with less that stellar credit can often encounter more challenges when it comes to obtaining a loan of any kind. Therefore, it can make sense for borrowers with poor credit to seek help from a mortgage broker.
With this support, not only are you more likely to obtain a home loan with more success as opposed to going directly to a lender on your own, mortgage brokers have also been known to have more access to the best loan rates and terms.
Since brokers typically have previous relationships with a certain set of lenders, they are better equipped to secure a loan for their clients. As well as relying on their lending partners, through these relationships, they also have the ability to negotiate better rates and terms for borrowers.
Ultimately, with more favourable loan terms and rates, borrowers can save money over the course of their home loan repayment term. This is especially important for borrowers with poor credit, as they certainly require a mortgage that is more manageable and one that will not lead to more debt over time.
In the end, mortgage brokers also save you time and stress, as they perform much of the legwork, including the extensive paperwork that is required during the mortgage process. Furthermore, they can also help you make sense of this process, by explaining the ins and outs of the mortgage options you will encounter. Above all however, mortgage brokers have the ability to save you a lot of money.
With that being said, not all brokers are created equal. As a result, you will want to examine your options when it comes to different brokers, making sure to go with a reliable brokerage group, perhaps even one who has experience dealing with borrowers who do not necessarily have an ideal credit score going for them.