Hiring a Mortgage Broker

The Benefits of Hiring a Mortgage Broker

Many people consider hiring a mortgage broker for help with getting cheap deals on loans and mortgages. As plenty of banks work alongside brokers, it’s very possible that one that you choose to take on will be able to negotiate with them directly, as well as handle the application process in its entirety. Ocean Home Loans offer the ability to communicate with banks on a far more personal basis, but is this where their advantages end?

The benefits of hiring a mortgage broker

The first thing to point out about hiring a broker, is that they specialise in acting as the ‘middle-man’ between an applicant and a bank. As a result, it’s not uncommon for them to be able to take on all responsibilities that a solo applicant will need to face. This includes the need to compile financial data, submit relevant data – or to simply compare interest rates and current deals.

There are two types of providers; those that work with banks and the ones that prefer to keep their services independent and unbiased. That’s not to say that the former are biased in any way – just that they will typically associate themselves with specific lenders. They will still compare rates and features, but within a limited number of lenders.

On the other hand, independent providers will keep their options a little broader, but they might not have access to the exclusive deals that are usually offered to brokers that work under affiliate agreements with banks. They will never be biased however, and won’t lean more toward particular lenders. This can offer a much fairer comparison across an entire spectrum of banks – allowing the applicant a greater chance of finding the cheapest deal out there.

What else can brokers offer?

The most common services offered by brokers relate to comparing loans and approaching banks to find the latest deals and special offers – but many of them also help their clients with negotiating terms and deciding on the most beneficial options for their repayment plans. Where some applicants might want to get their mortgage taken care of as quickly as possible, others might be happy to provide interest over a longer period of time, so that they can repay less back each month.

Different lenders will propose their own repayment terms and it’s these conditions that can usually be negotiated by a broker. If the expert was to source five loans for example, with each of them offering rates of between one and two percent initially, the applicant might want to prolong their repayments for as large an amount of time as possible. The broker will then return to the potential lenders and put forward their client’s requirements – and if the bank agrees, then the repayment fee might end up being much fairer than originally anticipated.

Brokers can also help with advice and support, as well as being able to offer guidance throughout the course of the application process. This can be very beneficial in and of itself, so throw in the fact that they can also compare rates, correspond with lenders and handle the majority of forms and document submissions (if not all of them) and you have a powerhouse of an expert to help with maximising the chance of being approved for a mortgage.