Finding the right home loan can be challenging, especially if you are a first-time buyer. It is possible to find and apply for a mortgage without the help of a broker. However, working with one of these professionals is an option you should consider since there are some advantages to going through a mortgage broker.
1. A mortgage broker will help you prepare your application
Applying for a mortgage requires you to carefully document your income and your current assets. The application process will be a lot easier if you already have all the documents you need. A mortgage broker can tell you more about the documents you need to prepare and make sure you have everything you need to apply for a mortgage before you begin looking for one. You will benefit from working with a broker if there are issues with documenting your income, if you are self-employed or own your own business or if there are some periods of unemployment in your work history.
2. A broker will explain your options
There are different types of mortgages to choose from. You can apply for a mortgage with a fixed interest rate or opt for a mortgage with a fluctuating rate. You can also decide to borrow for 30 years or opt for a different duration. A mortgage broker will be able to explain what your different options are and give you a better idea of how different types of mortgages will impact your finances.
3. A broker will help you select the best option
If you are not sure what kind of mortgage is right for you, you should definitely get help from a mortgage broker. The right broker will be able to go over your finances with you and explain the pros and cons of different types of mortgages. Applying for the wrong kind of mortgage can be costly since you might have a hard time with making your payments on time.
4. A broker can compare different lenders for you
“It is important to compare different lenders before applying for a mortgage.” points out mortgage broker James Lawhorn. “This can be difficult if you are shopping for a mortgage on your own since you will have to contact many different lenders and understand how their fees and the interest rates they offer will impact your payments. A mortgage broker will be able to help you compare different lenders and help you select the best lenders for your needs.”
5. Working with a broker can help you save time
If you do not have time to shop for a mortgage or to compare lenders, your best option is to get help from a professional mortgage broker. This is also your best option if you have already found a home you want to buy and need to find financing as quickly as possible so you can close on the sale. Either way, working with a broker will make finding a mortgage a lot less stressful. Checking out the Community Lending Centre could be a useful resource.
Using a mortgage broker means you will have to pay a fee to the agent. However, this is definitely worth it since you will be more likely to find a more affordable mortgage or, at least, a mortgage that is a better fit for your needs and your financial situation. Besides, working with a mortgage broker will help you save a lot of time, and you will not have to go through preparing your loan application on your own. However, it is important to look for a mortgage broker who has an excellent reputation and who also has several years of experience.