When buying a home, one of the most important factors in deciding your overall costs in the process is finding the right mortgage—one with terms and rates you can afford. You have two basic options when choosing your mortgage; you can deal directly with lenders, or you can use a mortgage broker to help you navigate these choppy financial waters.Depending on the amount of time you have to search, your experience in home buying, and your understanding of mortgages and financing, there pros and cons to each option. However, working with the right mortgage broker can save you time, money, and a lot of headache.
Brokers Save You Time
Brokers have regular contact with a wide variety of lenders, so they know the different products offered by many different lenders, they know which lenders might be offering special rates or deals, and they are experts in the field of financing and mortgages. A broker will be able to find you the right mortgage more quickly than you can call dozens of lenders to compare rates.
Brokers Save You Money
It’s not always the case, but many times brokers have access to lenders who work exclusively with brokers or who offer special rates to brokers. Additionally, brokers may be able to get lenders to waive some or all of the fees — such as application or appraisal fees — that buyers working alone would have to pay.
Brokers Save You Headache
Besides being able to cut down on the search-and-compare process of finding a mortgage, brokers will also take care of the paperwork once an ideal lender is located. This means you don’t have to worry about finding your way through all the financial jargon—your broker will handle it for you.
Using a broker can be a risk, if you don’t work with a reputable or recommended broker you can trust. Brokers might not always have your best interests in mind; some brokers get paid fees by lenders to send business their way and might choose one of these lenders over a lender offering better rates. Additionally, not all brokers are equally skilled or knowledgeable and might not have the same connections to lenders. That’s why it’s so important to ask your Realtor to point you towards a highly qualified broker.
Erie Real Estate Services
If you’re buying or selling a home in the Erie area, we want to help! Contact us today for more information, or explore some of the home selling resources we offer. You can also learn more about the communities in and around Erie and search available homes for sale in the area.