How Can Hiring Mortgage Brokers Help You Expand Your Investment Portfolio?

Asian couple planning for the investment

Of all people who buy homes in the United States, only 23 percent pay cash. The rest use mortgages to finance their property purchases.

The mortgage process can be an intimidating one, even for people who’ve gone through it before. Fortunately, there are mortgage brokers to help take the stress out of the entire process. The right mortgage brokers for investment can help you navigate through the loan process as you seek to buy a new property. 

In this article, we tell you why investing in a mortgage broker is the smartest decision when you want to expand your investment portfolio. Read on to learn more.

Who Are Mortgage Brokers?

Mortgage brokers are licensed professionals who act as middlemen between property buyers and potential lenders. 

The primary job of the mortgage broker is to find a mortgage that best fits your needs and has the most competitive rates. The best loan brokers have an extensive network of lenders who they work with. Once you’ve decided on the best mortgage for you, these brokers guide you through the application process, making life much easier for you.

What’s the Difference Between a Mortgage Broker and a Loan Officer?

A loan officer is on the payroll of a lender, so they’re limited to promoting the loan packages of their specific lender. A mortgage broker, on the other hand, is not limited to one lender. 

How Can a Mortgage Broker Help You in the Loan Process?

As we mentioned earlier, partnering with a reliable mortgage broker can help make your life easier when you’re buying your next property. Below, we outline eight top mortgage broker benefits to property buyers:

1. A Broker Can Provide Independent Advice on Your Options

Since a mortgage broker isn’t restricted to a specific bank or mortgage product, they’re usually on your side. A reputable broker uses their knowledge and experience to give you an objective recommendation on the best financing solutions for you. A broker will steer you away from mortgages that may have onerous terms buried deep in the contract.

This advice is valuable when choosing from hundreds of mortgage institutions in the market today.

2. A Broker Saves You the Legwork

Finding the ideal mortgage for you on your own can be a tiring process. You may need to contact a wide variety of lenders to make a decision. 

A seasoned mortgage broker can save you all that hassle. Usually, a broker has regular contact with numerous lenders, many of whom you may have no idea about. Of course, you need to do a bit of research about the types and rates of different mortgages in your area before you hire a broker.

3. A Broker Has Better Access to the Best Mortgages

Since a mortgage broker deals with mortgage loans every day, they’re able to offer you a wide range of loans from numerous lenders. There are mortgage institutions that work with brokers exclusively to bring them the right clients. Unless you work with a mortgage broker, you may not be able to access these lenders directly.

And since brokers generally generate a larger volume of business for the lender than you can, they usually enjoy special rates on mortgages. When you hire a mortgage broker, you thus get access to these special rates. 

4. A Broker Helps You Find the Most Beneficial Deal

Typically, mortgage brokers represent the interest of the buyer, not those of the mortgage institution. They act as your agent and help solve any problems that may arise during the loan process.

Once they’ve interviewed you, the broker will usually work with you to get you the best terms on your deal when it comes to the interest rate and the repayment term. Your situation may demand more than the straightforward 15 year-, 30 year-, or ARM rate. Your mortgage broker will help come up with innovative strategies and solutions that fit your situation.

5. A Mortgage Brokers Walks You Through the Loan Process

If you’ve gone through the mortgage application process, then you have an idea of all the paperwork involved. There are steps in the mortgage process that can be confusing to the average person. 

Since a mortgage broker helps buyers like you get loans every day, they have a thorough knowledge of everything involved in the loan process. That’s why it’s simple for them to find the right loan for you, help you accurately complete the paperwork, and swiftly file the necessary documents on your behalf.

6. A Mortgage Broker Saves You Time

The last thing you want to do when investing in property is to get entangled in a complex mortgage process. Who has the time to interview dozens of credit unions and banks to find a suitable deal? And who wants to have their credit report pulled by many loan institutions?

A mortgage broker can save you hundreds of hours needed for shopping around for a great mortgage deal. With the expert guidance of an expert, all you need is one application instead of filling out forms for several individual lenders.

7. Mortgage Brokers Do the Negotiating for You

Few people look forward to negotiating with salespeople. It’s an awkward and uncomfortable prospect for the majority of mortgage applicants. A mortgage broker can help do the dirty work for you.

Because mortgage brokers deal with lenders regularly, they are experienced negotiators. They know how to best get their clients the most reasonable rates.

8. A Mortgage Broker Can Help You Get a Mortgage With Bad Credit 

The benefits of having stellar credit are obvious when it comes to getting a mortgage. Unfortunately, not everyone has good credit. 

The good news is that it’s not virtually impossible for you to secure a mortgage if you have bad credit. A seasoned mortgage broker may be able to tell you what options you have and help you get a mortgage despite your less than stellar credit score.

Mortgage Brokers Are the Best Partners for Property Buyers

The process of financing property purchase can be stressful for many investors, but it doesn’t have to be. With the help of mortgage brokers, getting the ideal mortgage terms can be a walk in the park. 

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