Purchasing a home is one of the most significant financial decisions you will make in your lifetime. It can be a complicated process, especially when it comes to securing a mortgage. A reputable mortgage broker can offer a number of benefits and will significantly impact your home-buying experience in a positive way.
In this blog, we will explore the importance of working with a reputable mortgage broker and the benefits you will get.
What Is a Mortgage Broker?
A mortgage broker is a licensed professional who works with multiple lenders to find the best loan options for their clients.
Mortgage brokers help buyers understand the prequalification and underwriting processes and provide guidance on choosing the right lender and the right mortgage product. Rather than selling you on one bank’s product and rate, a mortgage broker will shop a number of different banks and financial institutions to find the right product for you; a mortgage broker works for you, not the bank.
They also help borrowers navigate the complexities of the loan application and underwriting process, which can include gathering and organizing documentation, completing paperwork, ordering appraisals and title insurance policies, and communicating with underwriters to advocate for their clients.
Why Work with a Mortgage Broker?
There are many reasons why working with a reputable mortgage broker is helpful when purchasing a home. Here are some of the most significant benefits an experienced and trustworthy broker will offer:
1. Access to a Wide Range of Loan Options – Mortgage brokers work with a number of different lenders, which gives them access to a broader range of loan products and rate sheets. This allows them to find the best mortgage product to fit your needs. They can also guide you in choosing between government-backed or conventional loans and/or other more specialized loan products that you likely wouldn’t find at your bank.
2. Expert Guidance and Advice– Navigating a real estate transaction and real estate financing can seem complex and unsettling, especially for first-time home buyers. Mortgage brokers provide expert guidance and advice, standing by your side throughout the transaction and being available to answer all of your questions. They help you understand mortgage terms rather than leaving you to guess at meanings and provide valuable insight on negotiating with lenders and underwriters to get your loan approved on the best possible terms.
3. Save Time and Effort– Working with a mortgage broker can save you significant time and effort. Instead of researching different lenders and loan products, you can rely on your mortgage broker to offer insight into the products, rates, underwriting practices, and closing timelines of different banks and financial institutions.
4. Improved Chances of Loan Approval– Mortgage brokers have extensive knowledge and experience in mortgage products and underwriting practices and guidelines, which can increase the chances of loan approval. They are often the fastest way to get you prequalified or preapproved, and then help you navigate underwriting smoothly and quickly once you are under contract to purchase a home. They understand the criteria lenders use to evaluate loan applications, can help you identify and address potential issues that could lead to a loan denial before you enter into a contract, and can help present your application to underwriting so that it is viewed from a standpoint most advantageous to you.
Working with a knowledgeable and experienced mortgage broker can help expedite the loan processing time. Mortgage brokers have established relationships with lenders and can leverage their relationships and connections to quickly move the loan process forward and expedite reviews as needed. In addition, they will typically provide a dedicated processor committed to working with you and will offer all of their skill, savvy, and resourcefulness to help you navigate any issues that do arise during underwriting.
5. Get Your Offer Accepted– Buyers who are preapproved by a loan officer who is known and respected in the real estate community can have a better chance of getting their offer on their new home accepted. In today’s competitive real estate market, sellers want to know, before they pull their listing down and take their home off the market, that the person they contract to sell to will have their mortgage funds come closing day. Working with a broker that Realtors know and trust provides sellers with all-important reassurance that your financing will receive final underwriting approval prior to the contract’s closing date, your mortgage will fund, and your purchase will close smoothly on settlement day.
Working with a reputable mortgage broker can significantly impact your home-buying experience. Experts from Harborside Home Loans (licensed in Maryland, DC, Delaware, and Florida) can save you time and money.
Contact us for a quick consultation now!