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A mortgage broker's job is to match you with a mortgage company that can offer you the best terms on your home loan. Most brokers work with a list of companies and can consider a variety of options for you. Do you really need a broker, or is it better to do the legwork yourself to make sure you get the best rate? There are a few things to consider.
Handling Paperwork
A broker handles a lot of the paperwork for you in terms of getting a pre-approval for a loan and helping you to process documentation. If you choose to find your own loan, you will have someone at that location who will handle paperwork for you, but if something falls through you may have to start all over again elsewhere. With a broker, it can be easier to move on if a loan doesn't work out.
Do You Have The Time?
It's a good idea to shop around for the best rate on your mortgage, and not everyone has the time to look at various companies and compare them. A broker handles some of that work on your behalf. For those who are looking to get approved for a mortgage quickly and don't have the time to look around and see which is the best lender for their needs, a broker might be a good idea.
No One Checks Everywhere
Most brokers have a set list of companies they work with in order to check rates and loan terms. They usually have a relationship with those companies and know enough about them to make a good call as to which might work best for you. Of course, no broker will be able to check every possible lender. If you do the work of comparing rates yourself, you likely won't check every possibility either. However, you might look at different places than the broker would. That doesn't mean you will do much better, but it is a possibility.
A broker handles a lot of the paperwork for you in terms of getting a pre-approval for a loan and helping you to process documentation. If you choose to find your own loan, you will have someone at that location who will handle paperwork for you, but if something falls through you may have to start all over again elsewhere. With a broker, it can be easier to move on if a loan doesn't work out.
Either way, there will be some paperwork you need to handle, and much of it handled by another person. With a broker, however, the process of applying for loans can be a bit easier since they will take some of the guesswork out of choosing a lender.
Working with a broker is optional, but can be beneficial to many people. Especially if you don't know a lot about mortgages, letting an expert handle the details can ensure things go smoothly.