How mortgage brokers can help you get the best deal on your first time home buyers shopping for your first home? It’s a huge decision and a nerve-wracking process. And for many first-time home buyers, the biggest hurdle is securing the loan. You may not have the credit history, and you’re not sure where to go to get the best rates. That’s where mortgage brokers can help you.
WHAT ARE MORTGAGE BROKERS?
Just like your real estate agent will help you shop for the right property, mortgage brokers help you get the loan that meets your needs, income, and budget. In both cases you can actually do all the legwork yourself, but that’s a big waste of time and money. You miss out on good deals and could end up spending far more on bank fees and unfair loan structures.
Besides, many first-time home buyers are young couples with young kids who already have more than enough on their plate. Instead of researching on different loans and deciphering confusing bank terms, wouldn’t you rather let a mortgage broker handle those details and negotiate the best deals for you? Then you can focus on what matters more: your family, your work, and the “fun” side of house shopping – like choosing paint swatches!
WHAT WILL MORTGAGE BROKERS DO FOR YOU?
In a nutshell, mortgage brokers guide and help you through the entire process of getting a home loan. They will present you with all your options, and gather all the documents you may need. They answer your questions, and in many cases, present alternatives when you feel like you’ve hit a roadblock. For example, you may be frustrated that you found a great house, but the steep loan amount is far more than you’re financially prepared for. Mortgage brokers will help you renegotiate the payment terms, or help you look for other lenders with lower interest rates.
1. ACCESS EXCLUSIVE PACKAGES AND DISCOUNTS
Mortgage brokers give homeowners “inside access” to deals that aren’t advertised. Many banks have special packages they only sell through mortgage brokers, so you’d never be able to get those offers if you walked into a bank as a regular customer.
2. HIGHER CHANCES OF PRE-APPROVAL
Second of all, they improve your chances of getting pre-approved for loans. Remember: your credit history is affected whenever you’re not approved for a loan. Since they’re very experienced in negotiating for loans, they know what to say and do so you get approved the first time around. Why put your credit history on the line because of your “rookie mistakes”? Leave it to the experts!
3. DON’T BE SURPRISED BY LOOPHOLES
Loans are essentially contracts you make with a bank, and like all legal documents, there’s a lot of complicated terms and clauses that are easy for a 1st time home buyer to misunderstand or miss. Even if you have already bought a place or 2 in the past it can still be overwhelming. Just like you’d never go to court without a lawyer who can represent your best interests, never go to a bank without a mortgage broker who can protect you and guide you as you make your decision. They will explain the terms, lay out the pros and cons of each offer, and make sure the loan is a good fit for your needs and budget.