Last Updated on January 22, 2024 by Umer Malik
According to one report, 40% of Americans think that buying a house is the most stressful human event. In addition, 38% said the process took longer than they expected and 33% said they cried at least one point during the process.
Finding a home of your own doesn’t have to be this difficult.
A mortgage broker can help you jumpstart the effort by finding the right loan. What’s a mortgage broker and why should you hire one? Read on to discover why this is one investment you can’t afford to skip.
Table of Contents
What’s a Mortgage Broker?
As you prepare to buy a home, you likely have plenty of to-dos on your mind. Hiring a mortgage broker might not be one of them. However, you’ll soon realize the need for one when you go to apply for potential home loans.
The lending process can be long and laborious. This professional is on hand to facilitate it and help it go as smoothly and quickly as possible.
What is a mortgage broker? In short, this is a licensed financial professional that acts as a valuable intermediary between a prospective home buyer and a lender. To get a license they do need to complete a Certificate IV in Finance and Mortgage Broking, so this is an important to look at when finding a broker. They will be by your side throughout each step, helping to make sure that you’ve gathered the right documents, spoken to the right people, and explored the right avenues.
This way, you can feel confident that you’re performing all of the required steps necessary to secure a loan. Otherwise, your application could be denied on a technicality, further delaying your progress.
Key Activities That a Broker Performs
What can you expect when you hire a mortgage broker? Here are a few of the main activities that this expert will perform:
- Communicate with lenders on your behalf
- Pull your credit history
- Verify your income and employment
- Gather and help complete all loan documents
- Ensure compliance with all local and state regulations
- Collect verification documents required for closing
- Analyze and compare loan options
Collaboration with a mortgage broker doesn’t end when you’ve found the right loan and lender. From there, you can work with this partner to complete every step of the home-buying process.
Your broker will work in tandem with bank underwriters, closing agents, and your real estate agent to ensure that everyone has access to the right documents and information, all the way up to that pivotal closing day.
Paying a Mortgage Broker
As you might expect, these services aren’t available for free. Mortgage broker fees will vary by individual, but most are paid by lenders, such as banks or credit unions. Conversely, they can also be paid by the homeowner.
However, regulations prevent them from accepting payment from both parties. In addition, their fees must be clear-cut and transparent, and cannot be set in accordance with your interest rate.
If you’re interested in hiring a mortgage broker, either on your own or through a financial institution, then we recommend doing your research first. Shop around to learn about your local options, and keep your budget in mind as you do.
Simplify the Home Buying Process
Buying a home should be an enjoyable process. After all, you’re one step closer to putting down roots and creating an oasis of your own! However, the lending process can be full of red tape and complications.
What’s a mortgage broker? This is the expert who can help you bypass all the stress and find the loan that works for you. With their help, you’ll be one step closer to the property of your dreams.
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