As a first-time buyer, you might be stuck on whether to use a mortgage broker or go directly to the lender. This is a common situation to be in and is nothing to panic about. After all, there are pros and cons that come with both options.
However, in 2023, more people are starting to use mortgage brokers so that they can experience the benefits that come with this. If you’re a first-time buyer, then these benefits will be appealing to you.
What is a Mortgage Broker?
A mortgage broker, such as Mortgage Broker in Penrith, is a company that arranges a mortgage between you (the buyer) and the bank (the lender). After discussing everything with you in detail, from your personal financial situation to the type of mortgage you’re looking for, the mortgage broker will then compare deals and pair you up with the best possible lender.
Are Mortgage Brokers Free?
This is entirely dependent on the mortgage broker that you choose.
Generally, most mortgage brokers are fee-free. What this means is that you don’t pay the mortgage broker any upfront fee at all. Instead, the mortgage broker receives a commission from the lender, which will typically be between 0.35% and 0.4%.
The fact that most mortgage brokers are fee-free is great news, as you won’t have to worry about any extra costs. As any first-time buyer will tell you, saving money is key.
Now, let’s discuss some of the best benefits you can expect from using a mortgage broker.
Save Time
Scouring the mortgage market for the best deal is a time-consuming process. As a busy professional or parent, this is something you simply might not have time to do. Thankfully, you can pass this task on to the mortgage broker, who will search the market for you. No stress, no worries.
Receive Expert Financial Advice
Mortgage brokers are top-level when it comes to analyzing the financial situations of first-time buyers to fully understand what type of mortgage is feasible for them. They’ll speak closely with you and make it clear what you can and can’t afford to take on. This way, you can take positive steps moving forward, knowing that you’re on budget and won’t cause yourself any financial harm.
Eliminate the Stress of Paperwork
Many mortgage brokers take care of the application process for you, which means there’s no need to worry about the jargon-filled paperwork that’s common when applying for a mortgage. Instead, all you’ll need to do is provide signatures in the necessary places. Aside from that, it’s a case of sitting back and letting the mortgage broker take care of it all for you.
Final Thoughts
Using a mortgage broker is an excellent option for first-time buyers looking to save time and eliminate stress. Remember, mortgage brokers work closely with buyers and go the extra mile to find the best possible deal on your behalf, which is why they’ve quickly become a major force for good in the housing market.