On the surface, mortgage brokers may look a lot like the advisors at your bank. But the truth is, they function differently. Here’s how an unbiased mortgage broker can help you save time, money and headaches along your journey as a homeowner.
A mortgage broker can help
Mortgage brokers are specialists in mortgage lending and maintain strong relationships with the banks, lenders, and professionals involved in the home buying process. An unbiased mortgage professional acts as the middleman between the borrower and the lender. Different lenders have different requirements and your trusted mortgage broker will work with you to understand your financial situation, goals, and to help you plan your financial future.
This offers a huge advantage to the borrower. When working with a mortgage broker, you complete a single application. The mortgage broker then starts the hunt for the best financial product for your goals and will consider many lenders until they find the best fit for you. Mortgage brokers are paid by the lender after the deal closes, and commissions are fairly standard across all lenders. This means that you are getting unbiased advice, for free, and your mortgage broker is not incentivized by anything other than making sure you find the best mortgage product for your needs.
How are they different from the bank?
Although there are some similarities, mortgage brokers are much different from the advisors at your bank. Both work with you to assess what you can afford when it comes to your mortgage. Both work with a lender to secure financing for your home. That’s where the similarities end.
First off, advisors at your bank work for the bank, mortgage brokers work for you. When you work with an advisor at a specific bank, you are submitting one application for the bank’s financial products. With an unbiased mortgage broker, you submit one application and they can shop around for you, finding the best product for you, not the lender.
Secondly, mortgage brokers are obsessed with your financial goals and want to support your entire financial journey. Banks face a lot of turnovers, so you don’t often work with the same advisor throughout your journey. Building a trusting relationship with a mortgage broker can save you a lot of money over your lifetime. They will also continuously search for new ways to reach your financial goals, saving you money. Your bank is incentivized to maintain higher rates and earn more money. Your trusted mortgage broker is incentivized to save you money and earn your trust.
Finally, mortgage brokers work with you on your mortgage. In some cases, mortgage brokers can offer other financial products, but these options are limited to what is necessary and beneficial to you. Banks have new investments, credit lines, and other products to sell you once they finance your mortgage.
How do I pick the right broker?
Picking the right mortgage broker requires searching for someone that is a good fit for your personality. The best place to start is searching online for mortgage brokers in your community and taking a look at their website, reviews, and customer experience.
An unbiased mortgage broker should offer you advice in advance of meeting you. Many mortgage brokers have blogs that can help you better understand the ins and outs of the mortgage process and help you understand what you should be looking for. Check out the Clinton Wilkins Mortgage Team blog for resources to help first-time homebuyers, existing homeowners, and anyone looking to improve their financial position.
For additional information, contact Clinton Wilkins Mortgage Team or call 902-482-2770.
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