Top 5 refinancing reasons to use a mortgage broker

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These top 5 refinancing reasons explain the unique superpowers of mortgage brokers

top 5 refinancing reasons

Whether you’re shopping for groceries or looking for a car, you want options. Shopping for a mortgage loan is no different. And there’s no better place to find options for a mortgage refinance than with a mortgage broker.

Trying to find the best mortgage for your needs, your circumstances, and your budget can be a difficult and often frustrating task. The wide selection of mortgage products available today means that consumers can enjoy incredible choice, and this choice increases the chances of getting a great value loan.

However, the downside is that you could end up spending hours and hours trawling through the mortgage deals from various companies, and while you are busy trying to interpret the financial jargon that many lenders may throw at you, another buyer could snatch the house of your dreams from under your nose.

A mortgage broker benefits includes you saving time searching for the best home loans
The other downside to going it alone when looking for a suitable mortgage is the time that it can take. With the pace of life as it is today, many of us barely have time to sit down and enjoy a little quality time as it is. Spending hours glued to the computer or ringing around various lenders is something that most of us can well do without.

If you go directly from lender to lender to get your mortgage, you will end up having to complete a new application for each lender, which can waste a great deal of time. Additional time will be taken up with browsing and comparing all the different deals with each lender, and then comparing the lenders against one another.

Using a mortgage broker is an effective way of getting a mortgage package to suit your needs without having to commit hours of your time to searching and browsing. When you use a mortgage broker service, you will simply be cutting out all of the time and work involved in finding a mortgage to suit your circumstances — and it won’t cost you a cent to do it.

If you remember the blockbuster film, the Fantastic Four, a movie based on the adventures of four superheroes, the quartet’s leader is the genetically altered Mr. Fantastic. He can stretch his body like silly putty. Mortgage broker often use powers similar to the costumed crime fighter.

The top 5 refinancing reasons would show you how they can stretch and shape a mortgage refinance to fit your financial situation.

Here are top 5 refinancing reasons that explain the unique superpowers of mortgage brokers, along with a word on how to prevent a broker from stretching your refinancing budget past the breaking point.

  1. One broker, many lenders. Mortgage brokers can put together a variety of loan packages because they have access to a wide range of lenders, who operate on a wholesale basis, relying on the brokers to find customers. A myriad of lenders operate on this basis, and brokers can choose whichever program fits your needs.
  2. Superior access. A wholesale lender works only through brokers. As a result, consumers don’t have access to their special programs or rates. You need to work with a broker if you want access to wholesaler’s unique loans.
  3. Stretching that loan package. A broker doesn’t have the constraints that you might find at a bank or other financial institutions in terms of structuring a deal. They can stretch or limit their fees and the terms on the loan. More flexibility on the part of the originator means a more flexible loan for you.
  4. The ability to be disloyal. A mortgage broker doesn’t need to be loyal to a vendor. If you are unhappy with a particular lender or don’t like the package it puts together, the broker has the freedom to look elsewhere. Wholesale lenders understand this, and they do what they can to keep the mortgage broker happy.
  5. Third party flexibility. The same flexibility brokers have with loans also applies to third-party vendors, like valuation companies and legal firms. Brokers can shop around until they find the best prices with the best quality work-and they can move very quickly.

For all their flexibility, mortgage lenders do have their downside. Because it’s relatively easy to become a mortgage broker, many don’t have extensive training or knowledge in the industry. They also derive much of their compensation through fees, so you’ll need to keep a close eye on your Good Faith Estimate. Be sure to ask for references before signing on with one of them.

If the broker proves to be established and reputable, let her put her fantastic powers to work. These top 5 refinancing reasons should show you how a mortgage broker can look like a real superhero.

Written by Ravi Chandran

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