3 Questions About Using A Mortgage Broker

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Need to secure a mortgage and looking to use a mortgage broker? A broker is going to be a bit different than using a traditional lender directly. Here are a few questions about using a mortgage broker.

Can You Save Time With A Mortgage Broker?

One of the reasons that many people decide to use a mortgage broker is because of the ability to save time securing a mortgage. If you wanted to shop around for rates, you are going to have to contact each individual lender and apply in person. Not only does this take a lot of time on your part, but you'll need to research the different lenders in your area before you even apply. This is not the case when you use a mortgage broker.

A mortgage broker works with many different lenders in your area, and they'll likely know which one will work out best for you based on your situation. For example, if you have bad credit, they can reach out to the lenders that are more likely to work with you. If you need a jumbo loan, they will go to the lenders they know that have the best rates for that type of mortgage.

Can You Save Money With A Mortgage Broker?

Many people wrongly assume that a mortgage broker is going to cost more than going to the lender directly. While some mortgage lenders charge a fee for their services, you are still likely to get a low rate on your mortgage compared to if you reached out to the lender on your own. That is because mortgage brokers get paid for bringing the lender business and get rates that are lower than advertised to attract the broker to using the lender. The interest rate that you pay over time may cause any fees paid upfront to be well worth the cost. 

What Happens If The Purchase Falls Through?

Most mortgage brokers will not charge you anything for their services if your home purchase falls through. That said, it's important to know how the process works. It is likely that a mortgage broker will want you to come back to them when you find your next home, and keep working with you until you manage to get a home that you're able to purchase. By working with the same mortgage broker, you'll definitely speed up the process on the next house since they have all your information. 

For more information, contact a local brokerage, like AJM Mortgage Inc.