If you're in the market for a new mortgage, you may wonder if it's worth hiring a mortgage broker—after all, you could simply go to your bank and apply for a loan yourself. But, there are still questions that might be difficult to answer on your own, such as, “Which lender should you choose?” “What mortgage program is ideal for you?” “How much money can you borrow?”
This is exactly the reason why engaging professional experts is essential for a better understanding of mortgage complexity. Here are the top five benefits of working with a mortgage broker:
1. Get the best deal for you.
A mortgage broker can look around for the best deal on your behalf while considering your specified demands and circumstances. Compared to dealing directly with a bank or building society, they offer access to an extensive range of lenders and products, giving you more options and negotiating leverage.
On top of that, since they are not connected to a single lender, they have no vested interest in selling you a mortgage from any particular provider and are free to provide unbiased advice.
2. Obtain expert guidance.
Whether you are a first-time buyer, looking to remortgage, or hoping to purchase a buy-to-let property, a mortgage broker can provide bespoke guidance and support for every step. They will take the time to get to know you and understand your long-term goals to recommend the most suitable products. Suppose you have any questions or concerns about the mortgage process, your broker will be pleased to provide answers and clarification, as well as assist you in resolving any concerns that may emerge during the application process.
Further, mortgage brokers are also financial advisors. They will provide insights about market trends that might impact your decision to purchase a property, tips on improving your credit score, and other aspects of the home-buying process, from property surveys and conveyancing to insurance.
3. Save time.
Applying for a mortgage can be time-consuming, especially if you are doing it on your own. Also, if you're working full-time, finding the time to apply for a mortgage during office hours can be challenging. So, employing a mortgage broker can save a lot of time and effort as they will do all the hard work for you. They will deal with the paperwork, chase up lenders for updates and progress reports, and generally keep the process moving forward so that you don't have to.
Aside from this, they can also work around your schedule and conduct business outside regular office hours if necessary. At the same time, some brokers even offer an online application process, which can be even more convenient.
4. Avoid rejection.
Lenders often require mortgage insurance, so it is expected that they will thoroughly assess your financial situation and employment history to determine whether or not you are eligible for a loan. So, if you are self-employed, have a poor credit history, or are considered a high-risk borrower, your application may be rejected.
However, with a broker on your side, you have a better chance of getting approved for a mortgage. This is because they may already have a good relationship with the lender and will be able to negotiate on your behalf to get them to approve your application. Besides, if one lender rejects you, your broker will likely know of other lenders who may be more willing to offer you a mortgage.
5. Get a better interest rate.
Mortgage brokers have access to exclusive deals and rates unavailable to the general public. This is because they often have special relationships with lenders and can negotiate lower interest rates on your behalf. In some cases, they may even be able to get you a discount off the lender's standard variable rate.
Moreover, if you have a poor credit score, a broker may be able to negotiate with the lender to get you a better rate than what they would offer you if you applied directly. So, if you're looking to get a good deal on your mortgage, employing a broker is worth considering. Remember that obtaining a lower interest rate will not only reduce the amount of money you must pay each month but will also save you a substantial amount of interest over the duration of the mortgage.
Bottom line
The whole process of buying a property can be daunting and confusing. Yet, with the help of a mortgage broker, you can ease the burden and take advantage of their expertise before making decisions. Not only will you save time and money, but you'll also have peace of mind knowing that you're in good hands.
While there are fees involved in hiring brokers, the benefits they provide usually outweigh the costs. If you're looking to get the best deal on your mortgage and have someone to guide you through the process, then employing a mortgage broker would be your best option.
