Buying a home can be a stressful decision. The most anxiety-inducing aspect for many people is the financing. Will they be approved for a home loan? Will they get a good interest rate? A good mortgage broker can help you sort it all out.
Working with a broker is different than working with a loan officer.
While both people work to get you a mortgage on your new home, a mortgage broker and a loan officer at a bank are two very different people. A loan officer is a bank employee who is trying to sell you the bank's services. They may only have two or three mortgage loan products available to offer you and they have the bank's best interests at heart.
A mortgage broker, on the other hand, is an independent contractor. Like your real estate agent, they are self-employed professionals. A home loan broker, as they are sometimes called, may have an office at a home buying loan service, but they work for you. They want to get you the loan that works best for your unique needs.
A home loan broker works with many companies and products.
Unlike a loan officer, a mortgage broker has many different products to choose from. They often have working relationships with many different companies in order to bring the most financing options to their clients, from conventional loans to stated income programs, and everything in between.
A mortgage broker can offer you government-backed loans.
Many consumers are attracted to the low down payment options and lower credit score requirements available with government-backed products, like FHA, VA, and USDA home loans. Mortgage brokers have access to all these programs just as any bank would.
Your mortgage broker needs to know the truth about your finances.
Do not try to hide any finance or credit issues from your mortgage broker. They need to be able to see the big picture in order to find the best product for your home purchase and to avoid any heart-breaking problems later.
In fact, they can help guide you in cleaning up your credit report. Whether you have erroneous information reported or have recently lived through bankruptcy, a mortgage broker knows how to handle each situation and help you make the best decision about how to proceed.
A home loan broker only gets paid if you close on your house.
Like many people in real estate, a mortgage broker works on commission. In other words, your mortgage broker only gets paid if the deal goes through. This helps ensure that they will be working hard to make it happen for you.
Working with a mortgage broker can ensure that you get approved for the best mortgage for your unique situation.