Buying your first home is a significant milestone. But how do you know if you're…
In life, no matter how much you study or how many books you read, you can never really know everything. Even when you are able to do your best, you can always do with a little bit of help.
Today, even though it may be part of everyone’s American Dream to own a house, not everyone actually has the time to learn the ins and outs of the mortgage process. And to a whole lot of people, getting a mortgage is really the only option there is.
If you haven’t heard of them before, in this article we’re happy to share with you the benefits of hiring a mortgage broker or advisor. We’ll also be listing down a few names in the industry for certain areas just in case you need a little nudge in the right direction.
If getting a mortgage is an unavoidable task you need to make in your life, you’ll be glad to know that there are affordable mortgage advisors who will be very willing to help.
Where to Get a Mortgage
When you’re interested in purchasing real estate but don’t have the upfront cash for the transaction, what you can do is take out a loan. Home loans like these are called mortgages.
As a potential mortgage customer, there can be three places or persons you can approach to get approved for home loans. First, you can try approaching your bank where you have a savings account so you can directly apply for a mortgage. A second option you can try is a nonbank mortgage company who can provide a lending service in the location where you’re buying real estate. And finally, you can also get help from a mortgage broker who will be the one to search for the best mortgage offer for you.
Mortgage brokers are oftentimes called mortgage advisors. This is because they are experts in this field of the loan industry and they can help make the mortgage application process clearer and more accessible to a customer. Although their services are not free, the fee can be paid by either the borower or the lender at closing. But they must not be confused with loan officers. Their job descriptions may look the same about 90% of the time but the service they each offer cannot be anymore different.
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A loan officer is someone who might work for a bank or a financial institution. This person is in charge of overseeing applications for loans, especially mortgages.
When you approach a loan officer, your choices can be quite limited because they will only be able to offer you the definite financial products offered by their company.
On the other hand, mortgage advisors are professionals who do not work for any specific lender. Instead, they make a career out of building relationships with a number of financial institutions and lenders so that it can be easier for a customer to get approved for loans.
Where you might only hear a “yes” or a “no” from a loan officer, mortgage advisors will not stop until they find you the best loan based on your needs.
Benefits of Hiring a Broker
The number of people who do not shop around for loans might surprise you, but in 2013, the Consumer Financial Protection Bureau (CFPB) found out that almost half of people who sought mortgage lending services opted to close their loans with the first lender who made an offer.
This statistic is ultimately unexpected because you would think that more people would want to know what’s out there before they settled on the option they think is best. Instead of laying out all the mortgage choices they can find, they really only sign with the one lender they hear from.
However, when you consider the personal cost of the mortgage search, you can only sympathize with the 47% of people surveyed by the CFPB. Whether or not they were able to weigh the monetary price of settling on the only rate and fee they were shown against the possible savings in other mortgage offers, at the end of the day, they decided that their time was more valuable.
In the same article, the CFPB noted that they “believe that mortgage borrowers should be shopping around”. The best mortgage loan for your home purchase is out there and you just need to make the effort to search for it. And this is why we are very fortunate that there are affordable mortgage advisors around who can do most of the legwork for us to find the mortgage most suitable to our financial capability.
If you are still unconvinced that getting a broker is a good option to explore, here are just some of the advantages of becoming a customer.
Someone to do the legwork
As if choosing the best mortgage that can service you according to your credit score wasn’t stressful enough, the application process itself can be quite time-consuming.
You might find that a lot of it concerns busing yourself from one location to another as you take care of paperwork, sign several forms, and go through several negotiations. There will be several people out there who’ll be able to share with you that this was the foremost reason they had for hiring a mortgage broker. After all, the home-buying experience is supposed to be an enjoyable process. You’ll be imagining your future and making a lot of plans. Most of the tasks involved in applying for a mortgage can suck all the fun out of this experience, and this is why it can be a great idea to delegate these chores to someone who already has years of background in doing the job.
Someone to cut the best deal
When it comes to judging just how much you’ll be able to save by hiring an affordable mortgage broker, it will depend on your particular circumstances. But the time alone that they can save for you is a resource that cannot be quantified.
However, one of the perks of this service is having someone to advocate for you with a mortgage lender because of the existing relationship they have built in their years of experience. It is possible for a mortgage broker to close a deal that will otherwise not be offered to you if it were negotiated by somebody else.
Having a mortgage broker on your side will also ensure that you steer clear from lenders who might not engage in the best business practices as well as unreasonable fees that may be hidden in the fine print.
Affordable Mortgage Advisors according to Location
Don’t just take our word for it. Below are some commendable mortgage advisors with A+ ratings at the Better Business Bureau. We’ve taken the time to identity them according to the area where you might need to take out a loan.
It’s time to pick up your phone to make that important call or email!