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

If you are planning to buy a new house, you are sure to look for a mortgage. However, you might also be wondering as to go to a mortgage broker or consult to a lender directly? Times has changed, a broker now no longer just 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 now made it all the easier and safer for you to engage with brokers. They take responsibility for your dream home and provide you with a comprehensive financial assessment. You will be sensible to not skip the broker, especially if you are a first-time buyer. Many people in order to save a few pence tend to skip approaching a broker which in future leaves 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 finally come to a conclusion.

PROS

1. A broker takes care of your financial conditions, the advice they will give will be tailored made to your needs. Hence you won’t have to shell out on a lot of 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 such deals as well.
3. There are a few deals that are only made for brokers, so you can get access to that as well.
4. Going through the mortgage process alone is usually very tiresome and can take a lot of your time. So if you want to save a little time and put that stress away then a broker can come to your rescue by doing the search for you.
5. Most of the time it is seen that brokers have proper expertise in the field of the mortgage, 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 take certain expenditures into consideration during your affordability assessment (including school fees, childcare costs, commuting costs, pension contributions).

CONS

1. Mortgage brokering at the end of the day is one type of business, they will charge you a fee for their services. Now, 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 cautious, no matter which way they charge you. They are entitled to outline fees in the disclosure document.
2. If you plan to not hire a broker then 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 will have to submit your application directly.

When deciding on whether or not to use a mortgage broker, a balanced approach may be the best solution.