Money / Financial Planning
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When you’re ready to buy a home, you may wonder if you should try to shop for a mortgage on your own or reach out to mortgage broker for help. A mortgage broker can be very helpful in the process, especially for people who are inexperienced in buying a home. Here’s everything you need to know about the pros and cons of using a mortgage broker.
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How Easy Is It To Shop and Secure a Mortgage on Your Own?
If you’ve never shopped for a mortgage before, you might be wondering if it’s a task you should tackle on your own.
“In today’s modern age, shopping for and securing a mortgage is easy to do
online,” said Kevin Leibowitz, a mortgage broker with Grayton Mortgage. “There are number of online lenders that help facilitate this easily.
But, sometimes those lenders might not offer the best terms (i.e.
combination of closing cost and rate).”
Leibowitz went on to say that he finds that most individuals who are shopping for a mortgage need help determining what is best in their situation, which is something a mortgage broker can help with. “A home is the most expensive item they will ever purchase, and buyers would like to be comforted in the process as well as having their understanding validated and perhaps corrected,” he said.
Khari Washington, broker and owner of 1st United Realty & Mortgage, is in agreement that it can be easy to shop for a mortgage on your own, but you need to have some knowledge when doing so.
“Shopping for a mortgage is easy if your income is easy to verify, your credit is
good and you know how to weed through how closing costs are structured,” he said. “
Borrowers need to know how many points they are paying for a rate so that
they don’t take a lower rate at a higher price, making the rate more
expensive than a competitor with a higher rate.”
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What Are the Advantages of Working With a Mortgage Broker?
One advantage of working with a mortgage broker is that you may be able to save money.
“Working with a mortgage broker may result in a reduction of the lender’s standard fees,” said Shad Elia, CEO of New England Home Buyers. “Borrowers may incur lower funding or
origination fees as a result of the loan provider’s assessment. This is not
always the case, though. When working with a broker, it is critical to
request a fee breakdown.
Another advantage is that you may reduce the amount of paperwork you would potentially have to complete.
“Homebuyers who take the time to look around for the best mortgage often
find themselves confronted with mountains of paperwork to complete,” said Elia. “Those
who deal with a mortgage …….