When searching for a home, many buyers enlist the help of a free mortgage broker to find them the best rate and terms of the market. However, as a consequence of the 2008 real estate market crash, the business practices of brokers have come under scrutiny. The questions about how they serve their clients and whether they act in a customer’s interest were also raised. Working with a competent and seasonal experienced mortgage broker can help you out in finding the right mortgage deal. While these brokers may be able to find the best deals for you, there are some advantages and disadvantages associated with it.
Advantages
- Saves Your Energy
Most free mortgage brokers have contacts with market lenders, some of which you have not even heard of and may steer you away from any hidden conditions they have in their contract. With that being said, do some research on your part before meeting a broker to get the idea about the mortgage trends circulating in the market? A broker saves you a lot of hassle in visiting different mortgage lenders by providing you with the best deals and terms fitting your needs.
- Better Access
Some lenders prefer to work exclusively with free mortgage brokers to bring them suitable clients, for the business. A client may not be able to directly contact some lenders to get the mortgage deals, and a broker comes in handy at this point. They may be able to get mortgage rates in a special way because of the business they generate and might be lower than usual market rates.
- Managing Your Fees
Several different types of mortgage fees are associated with different mortgage deals or working with new lenders. These include processing, origination, application, and appraisal fees. A free mortgage broker may be able to get lenders to waive some or all of these fee charges and save you a considerable amount on your mortgage plan.
- Finds The most Advantageous Deal
A free mortgage broker represents your interest rather than the interest of a lender. They act as your agents as well as your knowledgeable consultants and problem solvers. With access to a wide range of products, a broker is able to offer you the greatest value in terms of interest rate, repayment amount and loan products. Mortgage brokers interview you to know your needs and long/short term goals. An experienced mortgage broker will give you benefits in terms of innovative mortgage strategies and sophisticated solutions.
- Has Expertise to Meet Your Needs
A free mortgage broker helps you navigate through any situation, handling the process and smoothing any bumps along the way. For example, if you have a credit issue, a broker will help you find the lender that offers the best products to fit your needs. Borrowers who need a larger loan from their bank can also benefit from the knowledge and expertise possessed by a broker.
- Saves Your Money With No Hidden Costs
A free mortgage broker is offering a loan on a wholesale basis from the lenders and therefore can lend the best deal for you than the market, typically making total loan cost lower for the client. A reputable mortgage broker always discloses how they are paid and the total cost for the loan.
- Delivers Personalised Services
Personalised services are a differentiating factor during the selection of a free mortgage broker. You should expect your broker to be available, smooth your way, and advise you throughout the closing process. Check the qualifications and experience of the mortgage brokers, ask for references and rely on the referrals given by known people like family friends or financial advisors.
- Expert Advice
A free mortgage broker can explain the various details of each loan product, which can make a huge difference in the end. Factors such as the ability to make extra repayments or access to loan offsets end up being a crucial factor for the whole process. Having someone to take you through the pros and cons of each loan product can prove extremely valuable to help you get the right loan. Mortgage brokers also get feedback from clients about the previous loans they have advised, so they definitely know which loan type will work for you.