It’s easy to assume a person finds a home, gets a loan, and moves into their new home. However, this does not account for all the other little details such as deciding whether to use a bank or a broker, buying a house with a traditional or special mortgage, putting down twenty percent or more or less, and asking the seller for closing costs. There is so much fine print, so many details, and so much time that goes into buying a home, and finding a mortgage is just the first step. All buyers should get a preapproval letter from a bank before making any offers on any homes, but do they go with a mortgage broker or a bank when it’s time to find the mortgage of their dreams? It depends. Let's compare the options now.
Pros of A Mortgage Broker
A mortgage broker is someone who works with numerous banks and lenders to find buyers the best mortgage for their situation. The broker does not lend money to the buyer, but they work with dozens of lenders who do. The biggest benefit of working with a broker is the time buyers save. Rather than the buyer spending hours and weeks searching for the best rates, terms, and mortgage, the broker does this on the buyer's behalf. If a buyer is having trouble finding a mortgage with a traditional bank because of their credit score, their lack of a down payment, or any other reason, a broker can find the right lender for them a lot faster and without as much stress. Brokers work for the buyer, and they earn their fee.
Of course, there are some disadvantages to working with a mortgage broker. Keep reading to learn about them now.