Mr. Shakespeare warned us “neither a borrower nor a lender be”, but these days most real estate buyers must be borrowers.
Applying for a real estate loan through bank or credit union has been the traditional way to obtain a home loan, and perhaps a homebuyer with a long, personal relationship with a direct lender might seem to have an advantage. Not so much now, with all the competition on the Internet
Loan brokers have multi-lender sources, and a good broker knows their products and can recommend the best lender for your needs. Additionally, if one lender declines your loan, for whatever reason, a loan broker can shop your application to another lender. There is rarely a need to fill out an application for each lender the loan broker represents.
The loan broker understands closing costs, insurance requirements, mortgage insurance, and the unexpected costs of obtaining a loan, all of which can affect the buyer’s application.
The best way to get your financing right is to meet face-to-face with an experienced, recommended mortgage broker. With all of a borrower’s financial information in hand the loan broker can pre-qualify and, in some cases pre-approve, a buyer, so that when the right home is found, it will be easier to obtain that mortgage.
Remember that not all loan brokers are good for all buyers. Be sure to get recommendations from friends, family, neighbors and, of course, your real estate agent to find that one loan broker who will help you get into your new home.