Do I Need a Mortgage Broker? 6 Reasons Why the Answer is Yes!

If you’re ready to buy your first home but find yourself wondering ”do I need a certified mortgage broker?”, check out this blog for all the right answers!

Do I Need a Mortgage Broker from North Carolina Lifestyle Blogger Adventures of Frugal Mom

Did you know the median home price in the United States is $200,000?

Now ask yourself, do you have that stash lying somewhere? If you’re anything like the vast majority of Americans, the answer is a resounding no.

However, just because you don’t have a tidy amount in savings doesn’t mean you can’t buy a house. As long as you’ve got a solid income and your credit is fine, you can secure a mortgage and become a homeowner.

And if you’re already in the market for a mortgage, one question that’s on top of your mind is: Do I And if you’re already in the market for a mortgage, one question that’s on top of your mind is: Do I need a mortgage broker? Not sure where to go to find one and what it all entails? Lucky for you, FLCBank, a nationwide leader in the Wholesale mortgage industry, offers mortgage solutions wholesale to help brokers, therefore helping you navigate your home-buying experience.

Let’s be honest: most brokers don’t have a good rap. They are just out to close a deal and make a quick buck, right?

Well, you have your views, but when it comes to the mortgage application business, you do need a broker. Here’s why.

1. You Don’t Understand the Mortgage Process

If you’re not familiar with the process of buying a home through a mortgage, you’d be forgiven for thinking it’s a simple, straightforward process, as there are numerous different types, like reverse mortgages in Florida or in any other state. Just walk into a bank today, get your mortgage approved tomorrow, and snap up your dream home the next day…hooray!

Well, the mortgage process is anything but simple.

There are mortgage pre-approval and pre-qualification. This first step, which can take several days, requires you to provide a range of documents, including credit reports, bank statements, personal identification, tax returns, pay stubs, and anything else your lender might want.

Then comes house shopping, followed by mortgage loan applications, loan processing, underwriting, and closing.

This, by the way, is assuming you’ve already settled on an ideal lender.

Clearly, a newbie won’t hack this process on their own. You’ll likely make mistakes that will only increase the amount of time you’ll spend buying a home. Even if you don’t plan to get help at every step, you at least need a mortgage loan broker to explain the process to you.

2. Get Help Choosing an Ideal Lender

Speaking of settling on an ideal lender, did you know there are thousands of mortgage companies in the United States? This includes banks and non-bank companies.

Even if you narrowed down the search to companies in your state, you’d still be looking at hundreds of companies.

When shopping for a mortgage, it’s super important to work with the right lender.

Of the thousands of companies, some are exploitative and out just to make a profit. There are others on a genuine mission; to help Americans become homeowners without sacrificing their financial freedom. You want this type of lender.

This begs the question: how do you find the right lender?

You could start researching lender reputations on your own, but you’ll quickly realize you’re on a wild goose chase.

If you don’t want to leave anything to chance, hire a home mortgage broker. An experienced broker knows the mortgage loan industry like the back of their hand. They will assess your needs and help you narrow down to reputable lenders who will meet those needs.

3. Settle on the Right Type of Home Loan

Broadly speaking, there are two types of home loans: conventional and government-sponsored.

A conventional mortgage is one you’d be offered by a bank, credit union, or other private mortgage company. These mortgages are usually either 15-year or 30-year loans, and they can carry fixed or variable interest rates.

Government-sponsored are backed by a federal or state government. The most common include FHA loans, VA loans, and USDA loans. These loans can also be either fixed-rate or variable-rate.

There are also jumbo loans and conforming loans. Jumbo loans involve a large amount of money (exceeding loan limits established by Fannie Mae and Freddie Mac). Conforming loans are within the limits established by Fannie Mae and Fannie Mac).

Does this sound like jargon to you? Most probably yes, which also means you need to hire mortgage advisors. They will break down the different types of loans for you and help you choose a suitable one.

4. Get a Preferable Interest Rate

Interest rates on mortgage loans range from about 3% to about 9%, depending on several factors.

Although your credit history and the location of the property will play a big role in the determination of your interest rate, a broker can also help in a big way. They can use their industry connections to ensure you get a lower rate. If a broker can manage to get even a single percentage point off your interest rate, they would have more than repaid the money you’ll pay them in commissions.

In addition, your broker will help you understand the difference between a variable-rate and a fixed-rate mortgage, as well as help you choose one that suits your financial situation.

5. Get Help Filing Out the Paperwork

Even if you’ve got the time to fill out all the paperwork involved in applying for a mortgage, chances are you’ll get bored pretty quickly. Unless you’re filling out your bank account details for a lottery payment, you don’t want to spend hours on paperwork.

Home loan brokers love paperwork, though. They’re paid to file our paperwork.

You need one of these professionals to fill out your paperwork as well. This reduces your chances of making errors that can get your application rejected.

6. You’re Buying a House Overseas

Looking to buy a house abroad on a mortgage? You definitely need to hire a mortgage broker in that country.

Whether it’s a vacation home or an investment property, you need a broker who not only knows the country’s mortgage industry but also has a good grasp of the local laws and regulations.

Looking to buy a property in Australia, by any chance? We’ve done the homework for you. Here is the best mortgage broker in Australia.

Do I Need a Mortgage Broker? Yes, Absolutely!

Your question, “Do I need a mortgage broker?” only has one answer: yes!

Getting approved for a mortgage is a multi-step process that can quickly wear down the average consumer. A mortgage broker will take the guesswork out of the process and ensure you get the right home loan.

Keep tabs on our blog for more homebuying tips and insights.

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