10 Advantages of Using a Broker When Applying For a Home Loan

People are always stuck with the question of whether they should be going to the bank or a broker when requesting a home loan.

Make sure to use a mortgage calculator like this one: https://moreirateam.com/mortgage-calculator/ to figure out what kind of mortgage you’re looking at. Here are ten reasons why it can be to your advantage to contact a broker when you’re in the market for a taking out a home loan.

couple holding piggy bank with change

1.    Financially, it makes sense

For most home loans you won’t have to pay the broker a fee since the lenders pay the broker a commission for connecting applicants with them.

2.    Putting your interests first

Most financial institutions and banks will try to make as much money from you during the loan period whereas a broker will be looking at your interests first and look for a loan that will best suit your unique situation.

3.    A magnitude of choices

A broker can compare hundreds of loans from various lenders to find ones that will best suit your needs. They have access to a sizeable amount of information about products including offers from wholesale lenders that don’t generally advertise their services to property buyers directly.

4.    Submitting the loan application

A mortgage broker knows what the lender requires from applicants and will do the leg work of the application for you, making it easier and giving you a better chance at getting approved.

5.    After-hours service

Nearly all brokers will meet with you at a time which suits you best which is an attractive selling point for families and business professionals on a tight schedule.

6.    Dealing with the banks

Many people may not know that banks largely prefer dealing with mortgage brokers as they usually put forward prospective buyers who meet with all the loan criteria. It can also be beneficial to higher-risk borrowers and prevent them from being rejected and earning an adverse credit history.

7.    Avoiding hidden fees

Terms such as “honeymoon offers”, “exit fees” and “fixed rates” are just a few among those that can be confusing and confound. A broker can take a look at the terms and conditions and lenders’ fees to ensure you’re not paying more than you’re supposed to throughout your loan period.

8.    Borrow within your means

It is less likely to overextend yourself and running into financial difficulty along the line when you take out a loan through mortgage brokers, as they will recommend a loan to you that meets with your financial needs.

9.    Loan switching without hassles

In the event of you switching lenders whether you’re refinancing mid-loan or have sold or bought your home, the broker can manage the paperwork and related inquiries. When purchasing a property, they can liaise with the solicitor or conveyancer to speed things up.

10.    Check-up on your existing home loan

A broker can scan the current lending situation as per your request and make sure that you’re still getting the most favourable deal. And in case of your financial situation changing, they can deal with your existing lender or locate a loan that suits your needs better.

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