Don’t Be Fooled by These 4 Common Mortgage Broker Myths
posted in Mortgage News
For those who have never chosen to seek help from a mortgage broker, it may be because you’ve heard a few things about them that just aren’t true.
Mortgage brokers can be immensely helpful when searching for a great deal on a loan, and many of their clients are able to make significant savings that they simply wouldn’t have been able to, had they gone through the mortgage application process alone. Because they’re independent and aren’t affiliated to any one lender, they can search through all of the deals to find the one that’s the best fit for you and your specific circumstances. Not only that, but some lenders offer brokers exclusive deals that aren’t made available to consumers searching for a loan without professional guidance. However, with a number of myths surrounding mortgage brokers and the work they do, some consumers hang onto the mistaken belief that seeking their help, simply isn’t worth it.
Check out these common myths surrounding mortgage brokers, and if it’s possible that any of them are responsible for clouding your judgement, maybe now is the time to recognize the truth and put a little faith in your local mortgage broker:
Myth Number One
Mortgage brokers are really expensive
Because mortgage brokers are compensated by the lender once your mortgage has closed, this means that you don’t have to pay a fee for their service at all.
Myth Number Two
All mortgage brokers are employed by banks
This is completely and utterly false! Mortgage brokers are totally independent, and are not affiliated with, or employed by, any one lending institution. The role of a mortgage broker is to discuss your financial circumstances with you to get a clear understanding of what you can afford, and then to search for a mortgage that is the best match for you. The best match will include the best rate, the best prepayment privileges, and the best terms should you need to break the mortgage during the term.
Myth Number Three
Mortgage brokers will only work for those who have issues with credit
If you do have credit concerns, a mortgage broker is often in a great position to help you, but typically, you would work with one so that they can find a legitimate lender to offer you the best mortgage for your needs; note that this is usually better than any mortgage a retail bank branch would be able to offer you.
Myth Number Four
Mortgage brokers are bank representatives
Again, totally and utterly false! A bank representative may wear a number of different hats and be referred to by any of the following titles: specialist, account adviser, consultant, but they are not mortgage brokers and will never refer to themselves as such. The role of a bank representative is to sell the products of their bank; they certainly don’t have the ability, or the permission, to broker mortgage deals from competitors. Not only that, but bank representatives do not possess the licensing and educational requirements of a mortgage broker.
Now that you understand fully what a local mortgage broker is and how engaging with one can help you, isn’t it time you got yourself a great mortgage deal?