Although many home buyers get their loans through banks, most seek mortgage brokers for assistance. Unlike bank loan officers, mortgage brokers have dozens of lending institutions waiting to work with them. This gives borrowers like yourself more options to choose from.
How do these brokers help you?
Mortgage brokers are in the business of finding you the best mortgage possible. Bank loan officers work for the bank, and the bank’s interests are typically the loan officer’s top priority. Mortgage brokers are freelance agents who aren’t employed by any particular bank. This means that they’re more inclined to put the needs of the borrower first.
In most cases, an excellent mortgage broker in Edinburgh will want to sit down and have a straightforward chat about your financial situation. They want to know your goals as a home buyer, and your plans for the future. After talking with you, the broker will go over which loan options would work best for you. This process involves looking over countless loan types to find the right one. If you had bad credit, and went to a traditional bank, you’d almost certainly be denied. However, with so many options provided by mortgage brokers, even those with bad credit will be approved for some type of loan.
How does your broker get paid?
The best mortgage brokers tend to go above and beyond to look for the right loans for you. In return, borrowers are charged in a number of ways. For instance, borrowers may be charged in “points,” which is simply a certain percentage of the loan value you accepted. There are also processing and interest rate fees that may be passed down to you. However, most mortgage brokers are more than willing to negotiate the fees you’re required to pay.
Mortgage brokers are very professional and very helpful. Because they’re freelance agents they’ll be able to work with you to find the perfect loan with any lender. If your credit is in good standing, and you’d like to visit a local bank for a loan, that’s a good idea. But if your credit history is a little spotty, and you need more options, then a mortgage lender is the person for the job.