Buying a home is a rite of passage, but not everyone feels financially secure enough to purchase a property. Fortunately, a mortgage company can help you find the mortgage options that best fit your situation. The average down payment in 2017 was $12,829 — but if you’re not able to afford that kind of down payment, does that mean you’re excluded from homeownership? Not necessarily.
A mortgage company may have mortgage options that require $0 down. Before you decide that homeownership is outside your reach, talk to a mortgage broker. Here’s how they can help.
What Does a Mortgage Broker Do?
Mortgage brokers are not necessarily mortgage lenders, although they can be. A mortgage company differs from a lender in that they actually serve as the go-between you and the lender. They are experts in the mortgage programs available to you and will be able to “shop your mortgage” to different lenders.
Brokers have a wealth of information that can help you to get better mortgage rates and better terms, while allowing you to take advantage of the mortgage programs that are available. Instead of you doing the leg work on your own, a mortgage broker does the work for you.
The Advantages of Working With a Broker
Most homebuyers go to a single source to secure their mortgage. Often, this comes down to inexperience or lack of knowledge. They may not realize they qualify for special mortgage programs or they may not know that they can shop around for the best mortgage. Fortunately, a broker can guide you through this process.
Without the help of a mortgage company, you may end up paying more in interest than you need to on your mortgage. In other cases, you may not have the optimal terms for your mortgage — but you may not realize these terms can be improved. A broker can provide far more information than you may be able to find on your own and can explain anything you don’t understand.
In many cases, consumers believe that they are not eligible for a mortgage because they went to a single lender who said “no.” A mortgage company can change things around for you. They can also work with you to get your credit where it needs to be so that you do not need to worry about hearing “no” again.
The education your mortgage company will provide is priceless. The mortgage broker will explain the mortgage application process, mortgage rates, payment options, how to use a mortgage calculator, and more. In other words, they partner with you to ensure that your experience is stress-free.
Learn more about your mortgage options and how you can secure the funding that you need for your new home.
