Pros & Cons of a Mortgage Broker

The Pros of working with a Mortgage Broker

  • Mortgage brokers do all the research on loan options, rates, fees, and even negotiate with lenders on behalf of their clients. Saving you time, hassle, and money. 
  • Mortgage brokers work with everyone involved in the lending process. From the real estate agent to the underwriter and closing agent, ensuring the loan closes on time in the smoothest manner possible. 
  • Mortgage brokers are more flexible with their hours and sometimes willing to do after hours or weekends, meeting at a time and place that is convenient for you.
  • A Mortgage broker can find the right lender for tricky situations. If your credit history isn’t great or the property you’re buying is unusual, a broker can find a lender who has more flexibility with credit scores and down payment amounts or who specializes in certain types of properties.
  • Working with a Mortgage broker can provide you with faster access to a wider variety of home loan options.

 

The Cons of working with a Mortgage Broker

  • You might have to pay the broker: Before hiring a Mortgage broker, ask how they get paid. Usually, the lender pays the broker fee, but sometimes the borrower pays.
  • There is potential for conflict of interest: If a lender pays a mortgage broker a commission, the broker could favor that lender and you might not get the best deal available.
  • Some brokers may earn a higher commission from a particular lender, in which they may be in favor of and lead you towards.