Mortgage 101: Why You Should Hire a Mortgage Broker

Homeowners tend to avoid mortgage brokers due to fear of ridiculous fees and commissions on top of the contract price.

Buying real estate may seem like a manageable task, but along the way, you will realize it takes up a lot of time, effort, and peace of mind. Professional mortgage brokers can save you from the hassle associated with a sale, and it does not have to be that expensive.

Lower Interest Rates

Accredited mortgage brokers know how to get a loan with the lowest interest rates.

If you are a beginner, ServicePros Mortgage Brokers Auckland advises that you opt for in-house financing or long-term mortgage plans believing that low monthly fees are advantageous.

Saves You Stress and Time

Looking for the ideal property for your family will take a considerable amount of time and effort. Going around different neighborhoods or talking to various real estate agents is a tedious process. It is easy to lose sight of your goals when you have overwhelming information at hand.

Mortgage brokers know what exactly you are looking for and within the budget. They have enough properties in their arsenal just in case you are not satisfied with the first few ones.

High Chances of Approval

The right mortgage broker can represent you to banks or other financial institutions to get an approved loan. Although they will rely primarily on your credit score, a recommendation from mortgage brokers will improve your credibility.

Individuals who have just recovered from a bad credit history will benefit from the services of a mortgage broker. Standards are particularly high for individual applicants, but chances of getting approved increase if you are backed up with a mortgage broker.

Ask your broker how to fix your credit score if you have experienced any of the following: Unpaid collections, a history of bankruptcy, outstanding debts, foreclosures, and recent applications for a credit line.

The broker will guide you on the necessary workup to improve your financial records; thus, increasing your chances of getting approved for future loans.

Help You Get the Best Deal

Software technology firm IRESS reported that 80 percent of all real estate sales were bought through mortgage brokers.

The process of home-buying can be overwhelming not only due to the technical jargon used in the industry but also with the interest rates. An effective mortgage broker can cut the best deal for you, either through lowering the interest rate or prolonging your payment schedules.

Knows How to Choose the Best Option

Real estate properties are available all-year-round every time you search the internet or read the paper’s classified ads. With all those open mortgages, it is quite difficult to decide which offer is the most economical.

A mortgage broker understands your needs and desires. He will determine if your income and expenses can accommodate the monthly fees associated with the property. He will be upfront if he thinks the approval rate would be lower based on your paying capacity even before you shell out cash.

You Don’t Need to Pay

Contrary to what most people believe, home buyers do not need to pay mortgage brokers commission fees. Most of these brokers are affiliated with or working directly with a real estate developer, who gives them the commission for every closed transaction.

It is not the duty of the buyer to pay a professional fee unless otherwise, you opted to hire a broker on private practice.

Can Give You Mortgage Advice

Acquiring a property either through spot cash or a mortgage plan is a huge decision to make. As a buyer, you need to understand the important details about the house, the community, the location, the market, and financing options.

A good mortgage broker will give you the right information so you can weigh your options carefully. He is not afraid to divulge the negative aspects of the property because he wants you to align your expectations.

Has a Large Network

It is typical for mortgage brokers to work together regardless if they are working for different companies. You would want to partner with a broker who has connections not only within your city but also in other cities or states. This allows you to do a background check based on referrals from previous clients.

When an issue arises, say, you decided not to pursue the first choice of property. The broker can recommend alternatives even if it outside his jurisdiction. Network-sharing is important so you can transition smoothly from one broker to another.


House shopping is an exciting yet challenging milestone. Not everyone is knowledgeable about how the real estate market works. You have to understand the jargon, align your expectations with the offer, decide whether it fits your budget, and work on necessary documentation after you have closed the deal.

A licensed mortgage broker can help you accomplish all of these tasks fast and conveniently. He is willing to provide you with all of the information so you can make a sound decision. There is no need to pay hefty commission prices because a professional mortgage broker is more concern about you getting the best deal.

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