This article was written by a guest author from Lendesk, makers of mortgage software for Brokers and lenders.
Every mortgage application is unique, and no one knows this better than your broker. Depending on many variables such as your credit history, down payment, employment, assets and many more, your broker will be able to find you the best possible rate for your circumstances.
Knowing the ins and outs of the lending process, and having some insider knowledge of lender products, your broker could save you thousands of dollars over the lifetime of your mortgage. For this reason first and foremost, a broker is the best choice.
More Choice in Lenders
To find you these great rates, your broker will “shop” your deal around to a number of lenders, who will compete on price to win your deal. When you go directly to a bank, you are subject to their small number of borrowing options, with little-to-no flexibility on rates. By dealing with a broker, your deal is exposed to many lender options, increasing your ability to land a better deal on better terms.
Your Broker Gives You Personal Attention and Negotiates on Your Behalf
Most mortgage brokers are concerned with just one thing: getting you the best possible mortgage. For that reason, they understand the value of building relationships built on trust. That’s why most brokers get most of their business from the referrals of their existing happy customers and friends. They are in the business of building relationships, and will make sure they approach your deal with transparency and honesty.
When it comes time to lock in the terms of your deal, brokers are savvy enough to make sure you’re getting the best possible deal, and will fiercely negotiate on your behalf. Their insider knowledge could save you a ton of headache, and of course money in the form of interest. Not just that, but brokers are more likely to protect you from hidden fees and undesirable terms, like early repayment clauses, portability (from one house to another) or others, which could result in huge fees from a lender if not negotiated properly.
Making such a large purchase can be very intimidating and you’re already dealing with individual requirements for your real estate agent, appraiser, lawyers etc. If this is your first time, or if it’s intimidating, your broker can help you understand when each party needs which information.
After all, they’re specialists in this transaction and they are helping you.
Best of All, It’s Free to You
You may commit to your Broker in the form of a Client Agreement, but you never have to pay them; the winning lender of your deal will pay the compensation to your broker based on the terms of your deal. When you take into account that they have negotiated you better repayment terms and interest rates, and the fact that they don’t get paid until a deal is done that pleases all parties, the choice is clear: Brokers are your best option.