08 Jan 3 Ways A Mortgage Broker Can Save You Money
You’re finally in a position to purchase your own home, and while this is undoubtedly an exciting time in your life, the process of buying a home can be stressful, complex and certainly costly. However, one way of helping to reduce all those issues, is by working with a mortgage broker, who will dedicate their time and efforts towards finding you the very best mortgage deal for your particular circumstances. Striving to save you as much money as possible while helping to minimize the stress often involved with the whole process, below are 3 of the main ways in which a mortgage broker can help lower the cost of your mortgage:
A broker will negotiate on your behalf
While it might seem the simplest option, to visit your bank and accept whatever deal they offer you, you could be missing out on the opportunity to make significant savings with an alternative lender by doing so. You can conduct your own research and negotiate with other lenders yourself, but it’s important to keep in mind that when you have a mortgage broker do this for you, your credit file is pulled only once, saving your credit score from taking a hit; when you negotiate, each lender will pull your credit score individually.
Brokers have in depth knowledge of the current mortgage market
Mortgages are a broker’s specialty, so it stands to reason that they will have outstanding knowledge of the current market and the products available, along with the experience and expertise to assess each product thoroughly before determining whether they would suit you; taking your financial and personal circumstances into account. Choose not to work with a mortgage broker, and you lose out on all that valuable know-how and insider info.
You’ll have access to special rates when you work with a broker
During their everyday work, brokers communicate regularly with lenders – and not just the big banks – and as such, typically develop good relationships with them that are often fruitful for both parties. The lenders gain access to potential clients that they might not otherwise have had, when they’re referred to them by brokers, and the lenders reward them with special, unadvertised mortgage rates. Wondering how they’re able to do this? They can offset the loss in interest rate income with an increase in volume, enabling the broker to offer their clients lucrative deals, which results in new clients for the lender; everyone is happy!
Find a reputable mortgage broker in your area as soon as you’re thinking about applying for a loan to purchase a home, and most importantly, you could save a whole bunch of bucks, while also making the entire process from beginning to end, as stress-free as possible.