Should You Work With A Mortgage Broker When Buying Your Next Home?

Have you recently had an offer accepted on a home, and now you need to start the process of securing financing? You can either go directly to a lender and start the mortgage application process, or you can work with a mortgage broker instead. If you have never worked with a professional mortgage broker before, it will help to know some reasons why it would and would not be worth working with one.

Why Work With A Mortgage Broker

You may want to work with a mortgage broker because they have access to multiple lenders that they can leverage all at once. This allows you to find a lender that has competitive rates, more favorable mortgage terms, and even a lender that can offer a specialized product that fits your needs. You would have to seek all these lenders out on your own if you didn't use a mortgage broker.

You will also end up saving a ton of time by using a mortgage broker. If you were to do the work that a mortgage broker does, you would be the one to research and contact multiple lenders and handle all of the applications. It would not be a streamlined process at all, especially when you have more important things to do when buying a home. 

Your mortgage broker is also going to offer you plenty of guidance and expertise about getting a mortgage. This can be great for a first-time home buyer that does not know much about the process and needs some additional help selecting the right type of mortgage product.

Why To Not Work With A Mortgage Broker

The one downside to using a mortgage broker is that there is a cost involved with their services. They may charge you an application fee, a processing fee, or something of that nature. There is also a commission that the lender pays the mortgage broker for their services of bringing you to the lender. 

However, it is possible that the cost of working with a professional mortgage broker would be less than if you got a mortgage on your own. If you were able to find a competitive rate, you would end up saving a lot of money over time — which adds up to more than any flat fees you would pay upfront. Always do the math to make sure that it is worth using a mortgage broker