WHAT IS A MORTGAGE BROKER, AND SHOULD YOU USE ONE?

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You will look for a mortgage if you plan to buy a new house. However, you might also wonder whether to go to a mortgage broker or consult a lender directly. Times have changed. A broker now no longer brings you a list of available mortgages. They do more than that for a hefty fee. It is wise to see what they can offer. The legislative revolution has made it all the easier and safer for you to engage with brokers. They take responsibility for your dream home and provide a comprehensive financial assessment. You will be sensible not to skip the broker, especially if you are a first-time buyer. To save a few pence, many people forget to approach a broker, leaving them with a bad mortgage. Mortgage brokers also help you speed up your application process. Have a look at the several pros and cons to conclude finally.

MORTGAGE BROKER

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PROS

  1. A broker takes care of your financial conditions; their advice will be tailored to your needs. Hence, you won’t have to shell out much money.
  2. They have a wide range of mortgages ( via exclusive deals from lenders). They have access to the whole mortgage market like no one else. This will help you avail yourself of such discounts as well.
  3. A few deals are only for brokers so you can access that.
  4. Going through the mortgage process alone is usually very tiresome and can take much of your time. So, if you want to save time and put that stress away, a broker can rescue you by searching for you.
  5. Most of the time, it is seen that brokers have proper expertise in the mortgage field; this expertise can save you from later grief as they have in-depth knowledge of various habits and anomalies of different lenders. For example, if you are time-strapped, they may be able to tell you which lenders work quickest, or if affordability is your main concern, brokers may know which lenders consider certain expenditures during your affordability assessment (including school fees, childcare costs, commuting costs, pension contributions).

CONS

  1. At the end of the day, mortgage brokering is one type of business. They will charge you a fee for their services. This fee may include an hourly rate, a flat fee, or a commission; this can also be a combination of all three. Now, a moment of caution, no matter how they charge you. They are entitled to outline fees in the disclosure document.
  2. If you plan not to hire a broker, you may miss out on the direct deals; these deals could have saved you a lot of money. A good broker always tries to include it in the market assessment; without a broker, you must submit your application directly.

A balanced approach may be the best solution when deciding whether to use a mortgage broker.