The home mortgage marketplace is extremely competitive; even with recent interest rate hikes you can still find an excellent deal if you are willing to invest a little time shopping for it. There are two approaches you can take when shopping for a mortgage loan. The first is to do the grunt work yourself. This approach will ultimately save you the most money and is the subject of our free guidebook. Before you can successfully take on this challenge you need to do your homework and learn a little about the mortgage industry. When you do this you will understand the language lenders and brokers use.
If you don’t have the time or even the interest to lean this you could rely on a mortgage broker to do the shopping for you. Keep in mind you will end up paying more to have this legwork done for you. Mortgage brokers are not banks or lenders. A broker functions to evaluate your circumstance and find a lender that matches you. Mortgage brokers have access to hundreds of lenders. The broker will contact wholesale mortgage lenders that could be a good match for you; in this competitive marketplace the lenders will compete for your mortgage.
Finding the maximum number of lenders to compete for your loan will save you a bundle of money. You will be able to compare loans, interest rates, and terms; this will allow you to make an informed decision on the right loan for your situation. Brokers can be an excellent choice for individuals with poor credit. They can help you secure mortgage loans from sub-prime lenders. Granted, these mortgage loans will cost you more initially; however you do have the option of refinancing once you’ve established equity in your home. Mortgage brokers are paid by commission. The rule of thumb when dealing with a broker is “buyers beware” and read the fine print. Don’t hesitate to shop around for mortgage brokers in the same way you would shop around for a mortgage loan.
To learn more about saving money on your mortgage sign up for our free guide to mortgages and mortgage refinancing.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
