So — you’ve officially decided to start your search for a new house. Congrats! Of course, before you stumble upon that dream home, you’ll want to ensure you’ve taken all the right preliminary steps — starting with shopping for a mortgage. Considered by many to be one of the more arduous milestones in the homebuying process, securing a mortgage can be made simpler with the involvement of a broker on your side. But do you really need one?

Keep reading to learn the pros and cons of working with a mortgage broker today.

First Things First…What Is A Mortgage Broker?: A mortgage broker is a licensed and regulated financial professional who acts as an intermediary between borrowers and lenders. Brokers identify loans that meet borrower needs and then compare rates and terms so the homebuyer doesn’t have to. Mortgage brokers have the ability to offer mortgage products from a network of lenders and provide access to a greater range of products than loan officers, who are limited to their own bank’s offerings.

Mortgage brokers then guide clients through the application and underwriting processes, often by compiling application materials, pulling the borrower’s credit history, and verifying income and employment information. They also work with everyone involved in the transaction, including the real estate agent, underwriter, and closing agent, to ensure the loan closes on time.

Advantages Of Having A Broker:

Access to Multiple Lenders: Mortgage brokers work with a variety of lenders, including banks, credit unions, and private lenders. This gives borrowers access to a wider range of loan options than they might find on their own.

Enhanced Expertise and Guidance: Mortgage brokers are knowledgeable about the mortgage market and can provide elevated guidance to borrowers. They can help explain, for instance, the different mortgage products available, interest rates, and terms, making it easier for borrowers to understand their options.

It’ll Save Time: Brokers can save borrowers time by shopping around for the best loan terms on their behalf. Instead of contacting multiple lenders individually, borrowers can work with a broker who will do the legwork for them!

Sharp Negotiation Skills: Experienced mortgage brokers often have strong negotiation skills and may be able to secure better terms, such as lower interest rates or reduced closing costs, on behalf of their clients.

Customized Solutions: Brokers can tailor mortgage solutions to fit the specific needs and financial situations of each client, meaning they can find a mortgage that aligns with the borrower’s goals and financial capacity.

Looking for more mortgage insights? Read these posts next:

• Everything to Know About Mortgages Today
• How Much Mortgage Can I Afford?
• How to Buy and Sell at the Same Time

Disadvantages

It May Cost More: While some mortgage brokers are compensated by lenders, others charge fees to borrowers, which is why it’s important for borrowers to understand the fee structure up front. In some cases (but not all), going with a broker may make the overall cost of the mortgage higher.

Variable Quality: Not all mortgage brokers are created equal. Because of this, it’s important for borrowers to choose someone with ample experience and professionalism — along with an agent who always has your best interest in mind and can make trusted recommendations accordingly.

Not all Lenders Participate: Some lenders may not work with mortgage brokers, meaning borrowers may miss out on potential loan options available only through direct applications.

At the end of the day, shopping for lenders on your own is overwhelming and pressure-packed. Brokers can mitigate most of that mortgage anxiety by finding the best interest rates and terms for your unique financial situation — especially if you choose the right one.

The good news? At The Jenn Smira Team, we’ve built a partnership with Patti O’Connor of IntroLend Capital Mortgage. When you work with us, you’ll get more than just a lender — you’ll get an advisor who will be by your side at every step of your mortgage journey.

Give us a call today at 202.280.2060 or email us at jsmira@jennsmira.com to get started!