Understanding Financing Terms

Need A Mortgage? Consider Using A Local Mortgage Broker

One crucial step when purchasing a home is to secure your loan through a mortgage provider. While you can contact different providers on your own, you may be better off using a mortgage broker to get the job done. Here is what you need to know about using a mortgage broker for your home purchase.

What Are Mortgage Brokers?

When you work with a mortgage broker, you are not working directly with a lender. Instead, you're working with a person that works with several different mortgage providers. They'll do the legwork of getting rates from each provider and can help you find the best rate and mortgage terms that work for your needs.

What Kind of Lenders Do Mortgage Brokers Work With?

When you work with a bank's loan officer, you are only working with a single lender. You must go through the application process, find out if you are pre-approved, and decide to move forward with getting a mortgage if you like the rate and the terms. If you are declined or do not like the rate, you have to go through another lender and repeat the process all over again.

The mortgage application process becomes much harder when you have specific needs that you need to work with. For instance, you may be trying to get a mortgage with bad credit, a very small down payment, or after going through a bankruptcy. These can all make it challenging to find a lender that wants to work with you.

A mortgage broker works with many different lenders, so that they can help find one for you that will offer you the type of mortgage you need. This can be helpful if you've found it a challenge with getting pre-approved by a major bank.

How Can Mortgage Brokers Save Time?

It is very time-consuming to go through the application process with lenders--especially when the only free time you may have is a limited time frame on Saturdays when the local bank branches are open. A mortgage broker can take care of the application process for you with each potential lender. You essentially go through the process once, and they take care of the rest. This can free you up to work on other aspects of looking for a home.

If you have questions about working with a mortgage broker or mortgage lending in general, seek out a mortgage broker in your area.