This article is for educational purposes only. JPMorgan Chase Bank N.A. does not offer this type of loan. Any information described in this article may vary by lender.
A mortgage broker acts as the middleman between you and a lender. Their job is to find you a loan and interest rate that works best for you. Mortgage brokers assist with the application step of your homebuying journey and, once they help you find the right lender for your needs, they collect all the necessary documents and submit them for approval.
In summary, mortgage brokers are professionals who help make the application and negotiation steps of the homebuying journey easier when financing a home.
The perks of using a mortgage broker
There are several perks of using a mortgage broker. One of the biggest is how much time it can save. There can be a lot of back and forth in the mortgage application process, especially if you’re applying to more than one mortgage. The mortgage broker oversees communication with prospective lenders, which can free your hands for other important tasks during your homebuying journey.
If you’re a first-time homebuyer, a mortgage broker can help in guiding you through the application process. They can expose you to loan options you may not have had access to without them. They can provide guidance on what options may be the most affordable for you. Mortgage brokers can also save you a lot of time. They do this by handling a lot of the application duties and by offering their professional opinion on which loans you are and are not likely to get approved for.
Is using a mortgage broker required?
Using a mortgage broker is not necessarily required. There may be some instances where it’s preferred or suggested, but there is no legal requirement that says someone buying a house is required to use a mortgage broker.
Is a mortgage broker right for me?
Hiring a mortgage broker could be beneficial for fit-time homebuyers. They are licensed financial professionals whose job is to do a lot of the heavy lifting in your application process. One thing to keep in mind is that mortgage brokers sometimes charge a fee. This fee can be made up for in the type of deal they negotiate for you and extra fees they help you avoid from lenders along the way. On the other hand, mortgage brokers often have deals with certain lenders, so you may want to be cautious of who you work with and what their interests are.
If you’re looking to buy or refinance a house, having a professional on your side can save you from a few headaches along the way. Looking into hiring a mortgage broker may be worth your while if you’re looking for assistance with the mortgage loan process.