If directly dealing with a mortgage lender is possible, why do some people still insist on hiring professional mortgage brokers?
James Lee, a call center agent from Singapore, has been finding it quite a challenge to understand ‘the math’ and the whole deal about mortgage interest rates, “ I must admit, I am bad with all the computations and there are terms that just make me dizzy. I needed someone to give me sound advice and to help me comprehend what’s the true deal about mortgage rates or else I will never own that house I have been eyeing since I moved here in Singapore 8 years ago. You see, it is only now that I have been prodded by my colleagues who have been investing in buying properties that I have come to be acquainted with terms like home loans, mortgage rates, etcetera. I used to be content just renting and I never really liked the idea of buying my own car too knowing how efficient it is to commute in Singapore. But now that I am getting a bit older and everyone seems to be into all these things, I had to rethink some of my priorities while I am still single. The mortgage broker I hired to make everything easy for me. And I feel like a grown up now that I am about to own my first home ever.
Angie Mohr who wrote Advantages and Disadvantages of Using a Mortgage Broker for investopedia.com shared, “Saves you the legwork. Mortgage brokers have regular contact with a wide variety of lenders, some of whom you may not even know about. A broker also can steer you away from certain lenders with onerous payment terms buried in their mortgage contracts. That said, it is beneficial to do some research of your own before meeting with a broker. An easy way to quickly get a sense of the average rates available for the type of mortgage you’re applying for is to use a mortgage calculator. Tools like this will let you compare rates easily and provide you with extra knowledge when assessing a mortgage broker’s credibility.”
She further wrote about the advantages of hiring a professional mortgage broker, “Brokers may have more access. Some lenders work exclusively with mortgage brokers and rely on them to be the gatekeepers to bring them suitable clients. You may not be able to call some lenders up directly to get a retail mortgage. Brokers may also be able to get special rates from lenders due to the volume of business generated that might be lower than you can get on your own.”
Rebecca Taylor seems to share the same views about the pros of hiring an expert mortgage broker as she wrote Top 8 Reasons to engage a Mortgage Broker for localagentfinder.com.au, “Mortgage brokers play a few roles in helping you get that house. They act as a kind of middleman between you and the bank or lender. They’ll sit down with you and assess your finances first, as well as established your individual needs. You’ll provide documents to support your financial status so that they can determine your borrowing power. Next, they’ll establish a loan amount that works for you and decide which loan type is best. They’ll shop around for you (arguably the best part of utilising a mortgage broker) so you don’t have to go through the process yourself. That’s a lot less paperwork for you, plus a lot of time saved!”