How a Mortgage Broker Can Help You Secure a Lower Interest Rate
Mortgage brokers work with various lenders and can shop for borrowers to get them the best interest rates. This can save them thousands of dollars in interest over the life of the loan.
A mortgage broker will also help you with getting pre-approved for a home loan. This means lenders have analyzed your financial situation, verified your income and credit score, and determined the amount they would be willing to lend you if you bought a house.
Access to a Wider Selection of Loan Offers
The right mortgage broker can help you save thousands in interest throughout your loan. These professionals have access to a much more comprehensive selection of loan products and lenders and can compare them on your behalf. They also have the clout to persuade the big and little boys to offer you a better deal.
There are many types of mortgages, and the best one for you depends on your unique circumstances. For example, if you are buying your first home, your lender might be more than willing to help you get the most out of your loan and reduce your overall interest rate.
The right mortgage broker can help you save thousands on your new home throughout your loan. They have the clout to persuade lenders to offer you a better deal and can even negotiate with your current bank to ensure you get the best possible deal.
Lower Fees
A mortgage broker is a middleman who assesses your financial situation and advises you about the best lender for your needs. A lender is a bank or other financial institution that processes your application approves the loan, and credits the funds to your account.
Using their network of lenders and loan options, mortgage brokers like Quickstart Mortgage may help you save thousands of dollars in interest throughout your mortgage.
They also negotiate to get the lowest interest rate on your behalf. According to Rick Masnyk, branch manager at Network Financing in North Smithfield, Rhode Island, they can frequently negotiate rates up to 1% cheaper than you might get on your own.
For those who need more time to compare mortgage offers or who might require extra guidance on how to get a mortgage, mortgage brokers are a fantastic choice. They can help you navigate the confusing world of mortgages and get a loan that will suit your lifestyle.
Reasonable Faith Estimates Are Not Guaranteed
One document law requires when you apply for a mortgage is the loan estimate. This three-page document outlines your potential mortgage terms and upfront, monthly and closing costs.
The reasonable faith estimate was designed to help borrowers avoid overpaying for their home loans and make buying and refinancing more transparent. Rules passed in 1974 and 1992 created the reasonable faith estimate to encourage borrowers to shop around and compare fees on their home loan before selecting a lender.
A good faith estimate must include the exact loan charges, third-party fees and other costs as your settlement statement. However, it may differ by as much as 10% from your final settlement statement.
It Does Not Guarantee the Best Deal
Mortgage brokers can help you secure a lower interest rate by negotiating on your behalf with lenders. However, a broker cannot guarantee approval for a particular loan product.
This is because they need help independently accessing the entire selection of available mortgage products. Instead, they work with various lenders to find different programs that suit your needs.
Moreover, they must also be fully licensed in your state, which requires a bond. Check the Nationwide Multistate Licensing System & Registry (NMLS) website and your state’s licensing authority to ensure a mortgage broker has the necessary bond.
Using online resources is a good idea when comparing rates. It is common for a mortgage broker to recommend a loan product with a slightly higher rate than the one you’ve found on these websites, but only after explaining why they believe it will save you more money over time.
