Should You Hire a Mortgage Broker or Do It Yourself?

Cropped shot of a couple looking at paperwork while sitting with their laptop.
Written by Publishing Team

Cropped shot of a couple looking at papers while sitting with their laptop.

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When you’re ready to buy a home, you may be wondering if you should try shopping for a mortgage yourself or reaching out to a mortgage broker for help. A mortgage broker can be very helpful in this process, especially for people who are inexperienced in buying a home. Here’s everything you need to know about the pros and cons of using a mortgage broker.

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How easy is it to shop for and secure a mortgage on your own?

If you haven’t shopped for a mortgage before, you may be wondering if it’s a job you should do on your own.

“In today’s modern age, shopping for and securing a mortgage is easy
said Kevin Lebowitz, mortgage broker with Grayton Mortgage. “There are a number of online lenders that help facilitate this easily.
But, sometimes these lenders may not offer the best terms (eg
combination of closing cost and price). “

Leibovitz continued, saying that he finds that most individuals shopping for a mortgage need help determining what is best for their situation, something a mortgage broker can help with. “A home is the most expensive item he will ever buy, and buyers would like to feel comfortable during the process as well as validate and possibly correct their understanding,” he said.

Khari Washington, broker and owner of 1st United Realty & Mortgage, agrees that it’s easy to shop for a mortgage yourself, but you need some knowledge when doing so.

Shopping for a mortgage is easy if it’s easy to check your income, your credit
Good and you know how to get away with how to regulate closing costs.”
Borrowers need to know how many points they are paying for a certain rate
They don’t take a lower price at a higher price, which makes the price higher
More expensive than a competitor at a higher price.”

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What are the advantages of working with a mortgage broker?

One of the advantages of working with a mortgage broker is that you may be able to save money.

“Working with a mortgage broker may lower the standard fee for the lender,” said Shad Elia, CEO of New England Home Buyers. Borrowers may incur less or
Fee establishing a result of the loan provider’s evaluation. this is not
though. When working with a broker, it is critical
Request a fee breakdown.

Another advantage is that you can reduce the amount of paperwork you are likely to have to complete.

Homebuyers who take the time to look for the best mortgage often
“They find themselves facing mounds of paperwork to complete,” Elijah said. “Those
On the other hand, who deals with the mortgage broker, will only need to
Submit a single application for a new loan, instead of filling out several applications
applications and submit multiple copies of financial statements to
different lenders. “

“The mortgage broker will be able to buy the loan right, look at the actual cost of the rate and really find the cheapest provider to work with,” Washington said. Mortgage brokers also have lenders that can help finance problem borrowers. Mortgage brokers are usually a little faster at getting financed loans, too.”

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What are the disadvantages of working with a mortgage broker?

While it probably isn’t a problem for most people, Jeffrey Lloyd, director of Mortgage Acuity, noted: “You’re not likely to get a mortgage at the same bank as your checking and savings account.”

Leibovitz noted two other flaws.

“The main disadvantage is that mortgage brokers may not be competitive
on a few types of products,” Leibovitz said. “And they are huge mortgages and interest-only mortgages. These banking products are called the best. In addition, since a
The Mortgage Broker is not a Depository, and we can’t offer a rate interest to it
Bring in deposits. For example, the bank may be able to lower the rate if the borrower is able to bring in deposits of X dollars.”

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Who Should Consider Working with a Mortgage Broker?

All home borrowers should work with a mortgage broker, as there is none
“You lose a lot and you gain a lot,” said Ross Taylor, mortgage broker and owner of Ross Taylor Mortgages. “In particular, there are some borrowers who
It won’t be approved in their bank, and they need access to a mortgage
Lenders who are not necessarily banks. In such cases, working with a
A mortgage broker is necessary to get approved. These may be borrowers
with damaged credit or income that is difficult to verify.”

“The mortgage broker is best for those who want more time with their loan officer to get their questions answered and their concerns addressed — first-time home buyers, homebuyers with less than 20% down payment, self-employed people or people who struggle with sourcing complications. Their income, real estate investors — they are all great customers for mortgage brokers,” Loyd said.

“I find that most borrowers work better with the mortgage broker,” Washington said. “Different mortgage brokers do better with different loan programs, and brokers seem to work faster, have lower overlap requirements and lower rates.”

However, if you have excellent credit, prefer to take out your mortgage loan at the same institution where you bank and believe you can get the best rate for your bank, follow Taylor’s advice, “If you feel
Your bank for many years is where your mortgage belongs to, ask them first
Best mortgage offer. Then ask your mortgage broker if she is [or he] He can
better. Most of the time, the answer is yes! “

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About the author

Cynthia Maysum is a personal financial writer and editor with over 12 years of collegial experience. Her articles have appeared in MSN, Aol, Yahoo Finance, INSIDER, Houston Chronicle, The Seattle Times, and The Network Journal. She attended the University of Texas at Austin and earned a Bachelor of Arts in English.


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