After the global financial crisis banks and home loan companies tightened their leanding criteria making obtaining a mortgage harder. Now homeowners who don’t search the mortgage market are not only faced with lenders that wont led but mortgage producst with rates that vary according to an individuals circumstamces. To make life even harder your high street bank or lender that you are famir with may not actually provide the best deal.
Brokers are also worth their weight in gold, because they know key details about lenders' criteria. So they would know if the lender you're thinking of doesn't lend on properties above shops, or in council blocks - so they'd be able to recommend a different lender who does.
But, the key is to find a broker you're comfortable with. Whether you are buying your first house or looking to refinance, Mortgage broker like Kansas City mortgage broker can offer solutions for individuals with lower credit scores, and access to a wide variety of loan types,
A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have sold their own products. As markets for mortgages have become more competitive, however, the role of the mortgage broker has become more popular. Today, in several developed mortgage markets, (especially in Canada, the United States, the United Kingdom, Australia, New Zealand and Spain), mortgage brokers are the largest sellers of mortgage products for lenders.
Mortgage brokers exist to find a bank or a direct lender that will be willing to make specific loan an individual is seeking. Mortgage brokers in Canada are paid by the lender and do not charge fees for good credit applications. Many mortgage brokers are regulated to assure compliance with banking and finance laws in the jurisdiction of the consumer. The extent of the regulation depends on the jurisdiction. Only one state within the United States has no laws that govern mortgage lending.
Do you need a mortgage broker?
Mortgage brokers can scour the market for you, looking for the right deal to suit your situation. They are also particularly useful if you are in an unusual position. A mortgage broker is more or less the best option and here are some reasons why you need one.
Wide variety of lenders
A broker who is experienced and knows how to go about his job would have a wide range of lenders to choose from, lenders that you may not even about. Brokers would definitely know which lender is easier to deal with.
Relieves you of the stress
As it is stated in the first reason, a broker is definitely at a better chance of finding a lender who is easy to work with and whose rates are in sync with yours. This saves you the stress of calling different lenders to compare your rate with theirs, as the broker would have this completely taken care of.
Some lenders have strict policies to work only with mortgage brokers because it is believed that the brokers would be able to bring good clients. Some lenders do not go well with the idea of a client calling directly. They would rather do business with a broker.
Better bargaining power
A broker knows the pros and cons of his job and would be quite knowledgeable about what to do or say when it comes to cutting down the fees that one is more likely to pay if he has no intermediary while taking a loan.
An intermediary would present you with better deals as he knows which lender is easier deal or work with and would definitely choose what is convenient for you because it would be in his best interest if his job pleased you, as he might be able to get more clients through you
These are five reasons why using a mortgage broker is a wonderful idea.