Why should you use a mortgage broker? In order to answer this question you need to know what is a Mortgage Broker and what he or she will do to help you purchase a new home.

A mortgage broker is someone whose job is to find you the appropriate lender for you to obtain a loan. They do this by assessing your information and financial needs; and then carefully research various companies and the options they offer so as to find the best available mortgages for you. To maintain objectivity, they should be independent so as to not be influenced by any of the financial institutions they may recommend.

The best thing about using a mortgage broker is their services are FREE! That’s right, you pay nothing – Their fees are paid by the lender and often times your broker will pass their commissions back to you! So not only do you have an expert mortgage analyst – The service is at no charge and you might even receive a bonus for using them!

So why should you use a Mortgage Broker? You can do this yourself, right? Well maybe you could if you have the time, the knowledge and knew what to ask. The biggest issue though is time and for many of us, there just aren’t enough hours in the day. So how can a mortgage broker or company help you?

• Stress relief - In fact, the stress of looking for a new home and actually going through the purchase process is almost too much to bear, let alone trying to figure out what would be the best loan for you and then securing it.
• Objectivity – Having someone (third party) to look over your credit history, requirements and needs. They can recommend strategies, if necessary, that will help you to improve your credit.
• Industry knowledge – Knowing the various mortgage options available as well as current interest rates. This can truly be mind-boggling and you need someone who can make sense of it.
• Trust – looking out for you, the new home buyer, making sure you are happy and comfortable with the loan package.
• Interest rates – Securing the lowest interest rates is the priority.
• Speed – If you need a loan quickly, a broker will know which financial institutions have the fastest turn-around time.
• Credit repair – Counseling on analysing and fixing credit problems on your credit report.
• Removing loan barriers – Guidance on obtaining financing for people with credit concerns and other problems which might receive a rejection.

Unless you work for a financial lending company, you have only a limited understanding of what mortgage options are available and how the various types, interest rates and note term will affect your payment structure.

In essence, your mortgage broker is there to look out for your best interests. Consider this, you do not take advantage of using a broker, do you think that a loan officer is going to take the time to choose a mortgage option tailor-made for you? Will you even be shown the several types that you qualify for or will you just be handed the paperwork to sign and that’s all?

If you have any special situations or issues with your credit history, employment or are a non-resident, a mortgage broker is your only solution to finding an appropriate loan for your home purchase.

On the surface, the use a mortgage broker or company may seem frivolous and unnecessary, however if you value your time, want to find the best loan possible to meet your needs – You need a mortgage broker. Not using one could quite possibly be the biggest mistake you make when purchasing a home.