Questions to Ask Yourself About Picking Between a Mortgage Lender and Broker
Are you ready to purchase a home but you need to secure your financing? You're likely deciding between if you want to go through a mortgage lender or mortgage broker. Here are some questions you should ask yourself to determine which one is best for you.
Do You Have Bad Credit?
Are you worried about getting a loan because you have bad credit? This can make the process of going from lender to lender a bit daunting. With so much time involved to apply at each bank, and the high risk of rejection, it can make it difficult to find a loan for you.
Thankfully, a mortgage broker is going to best help in this situation. They know which lenders are willing to work with people who have bad credit, and they can help narrow down the application process for you. You only need to apply once with your mortgage broker, and they will do the rest of the work to submit your information to other lenders.
Do You Want To Shop For A Good Rate?
Is one of your priorities receiving the best possible interest rate on your home? This is understandable since you could be paying that mortgage off for the next 30 years, and a small interest rate percentage difference can make a big difference over time. A mortgage broker can actually help get you a lower interest rate you could not get for yourself.
When a lender works with a mortgage broker, they know that the broker is working with multiple lenders to find the best mortgage for you. This can actually make the lenders more competitive, since they don't want to waste time running someone through the approval process, only to lose them to another lender over a difference of 1/16 of a percentage point. Brokers can also get special financing rates that are lower than what you see advertised, which is to encourage the broker to bring the lender more business over time.
Do You Need To Close Quickly?
If speed is a concern for you, then it may be worth going directly to a lender instead of going through a broker. A mortgage broker must meticulously go through all of the given information when it comes to the approval process so they can give you the best rates. However, directly working with a lender means that they can help speed things up if you are in a hurry. If you have a closing date coming sooner rather than later, consider working directly with a lender.
For more information about which option is better for you, contact a mortgage broker in your area to learn more.