Preparing mentally for mortgage payments, especially as a first-time homebuyer, can feel daunting. However, with…
Stressing because you’re not sure which type of mortgage is best for you? Aside from worrying about securing approval for a home loan, another common source of anxiety for borrowers is the concern for getting the best mortgage deal.
For the most part, this apprehension is understandable. This kind of judgment can only be arrived at after a lot of computation, risk analyses, as well as tons of research. Crunching those numbers is really no joke!
It’s not enough to know if you will be able to afford a particular loan. You also have to do your best to compare offers from different lenders to ensure that you’re not missing possible savings.
According to the Consumer Financial Protection Bureau, almost one out of every two mortgage borrowers fail to get second offers from different lenders. Forty-seven percent of people usually proceed with the first lender who makes an offer. On the one hand, kudos to the pool of sales talent we have in the country, but on the other, it does make you wonder about the surplus in earnings the industry gets in total just because clients don’t take the time to shop around.
If you find that you are too busy to compare and contrast mortgages from various lenders, maybe it’s time to delegate the job to a mortgage advisor you can trust. In this article, we’re going to talk about the benefits that await you should you decide to let these qualified professionals assist you in your home purchase.
Everybody does need help sometimes, and when it comes to mortgages, we really should make an effort to listen to all the advice we can get!
Table of Contents
What are mortgage advisors?
The mortgage application process is something that you might only have to go through once in your life. If you’re lucky, you might never have to go through it at all. But for people who do, many find it less complex when they avail the services of mortgage advisors.
Whether they’re called advisors or brokers, these professionals give the same type of services. They review your financial information and background, look up your credit score, choose the right type of mortgage for you, and connect with lenders. They don’t originate loans. They earn by getting commission either through the lender or through the borrower. Typically at about 1 to 3 percent of the total loan amount. Some advisors might not even charge you, especially if you are truly only after getting their professional opinion.
Is it better to get your mortgage from a bank or a broker?
When you apply for a mortgage directly at the bank, the person you will speak to will be the bank’s loan officer.
Although both loan officers and mortgage brokers will basically sell you home loans, the main difference between the two is the number of options they’ll be able to offer. A loan officer will only be able to quote you the rates, services, and programs available at that particular bank. If you are concerned about getting the cheapest payment deal, you might be better off with a mortgage broker. But if you are already set on a particular bank or a particular loan, it might make no difference whether you apply through a loan officer or a mortgage advisor.
Whatever the case, the most important thing is that you are aware of your options, and you have made it your business to understand the process.
Is it worth it hiring a mortgage advisor?
Since 2008, the mortgage industry has had quite a bad rap. Many customers still remember the horrible effects of the Global Financial Crisis that saw people losing access to their homes. For a lot of people, life is still not the same. Although there have been many lessons learned from this ordeal, subprime mortgages are, unfortunately, still making a comeback.
You don’t even need to have insider knowledge to comprehend the damage that another generation of mortgage brokers can wreak on the nation and the global economy when they don’t have the customers’ best interest at heart. That’s why, today, even as we explain the convenience you can get when you purchase your home through a mortgage broker, we hope you can also listen to the best advice we can give you. Make it your mission to know your financials through and through. When you make this commitment, even the worst advice from a broker will not derail your future.
Buying a home is a personal decision and responsibility. Even as you get a third party involved to help you access the best mortgage loans, know the rates for yourself and decide based on your financial capability.
Here are some of the advantages of hiring a mortgage advisor.
1 – Access to partners
As a mortgage customer, you’ll only ever need to do business with a lender a few times.
Mortgage advisors, on the other hand, deal with plenty of lenders daily. They might also have contacts at banks and even government offices. These are important partners that you might have to build a relationship with to secure the best home loan. However, in case you can’t, due to lack of time and lack of further need, it’s a good advantage to hiring a mortgage advisor. You’ll get access to their existing business relationships without having to deal with their partners in person.
2 – Saves time
When you apply for a mortgage, there will be several pieces of paperwork and documentation that you will need to submit. You’ll have to set up a lot of appointments, talk to real estate agents, and shuffle between lots of offices.
A lot of people end up hiring mortgage advisors to skip on this whole process. After all, it takes all the fun out of the home buying experience when you have to keep filing boring paperwork for your mortgage. Instead of running all this documentation, you might be spending time with your family or planning for home improvements instead. You might also be able to make less costly mistakes this way, making your closing period much faster than it might be if you process your mortgage on your own.
3 – Saves money
Although a successful mortgage advisor and client relationship will mean that fees will be involved, this might be nothing compared to the service of getting you a cheaper loan. Mortgages are long-term commitments, and a decimal point difference in rates can mean hundreds to thousands of dollars when you finish paying off your loan program.
For this particular advantage, you’ll have to decide for yourself if it will truly be in your favor. But doing your due diligence will only be a win-win. When you better understand your mortgage and interest rates, you’ll really be protecting yourself from any unnecessary surprises down the road. So get a calculator and be prepared to do the math. It’s for your own good!