When shopping for a mortgage, potential home buyers often wonder whether they should hire a mortgage broker or go straight to a mortgage lender. The answer depends on your financial position, willingness to deal with mountains of paperwork, and familiarity with the mortgage application process.
Below, we’re going to discuss the advantages and disadvantages of hiring a mortgage broker versus hiring a mortgage lender in Alton, Illinois when purchasing a home.
Hiring a Mortgage Broker
A mortgage broker will shop your loan application around to different lending institutions to find you the best mortgage rate. They will guide you through the application process while taking your financial needs into consideration.
What are the advantages of using a broker?
- You only need to fill out the mortgage application once. Your mortgage broker will then approach the lenders on your behalf.
- Applying for a mortgage can be a red-tape nightmare, especially for first-time homebuyers in Alton, Illinois. Your mortgage broker will be there to help you every step of the way.
- Your mortgage broker has access to several lending institutions — whether it is a bank, credit union, or mortgage company — and is aware of the best rates available.
- If you have anything negative in your credit past — such as bankruptcy, foreclosure, or a history of late payments — your mortgage broker can help.
What are the disadvantages of using a broker?
- Of course, you need to pay a fee for the broker’s assistance. While their services are worthwhile, the fees can add up. Therefore, read all the loan paperwork carefully and inquire about any costs you do not understand.
- Working with a mortgage broker in Alton, Illinois may also cause your application to be delayed since the broker must shop around for the best rates.
Going Straight to a Mortgage Lender
Going straight to a mortgage lender in Alton, Illinois may be a better alternative for you if you feel comfortable shopping around.
What are the advantages of finding your own mortgage lender?
- You can be as hands-on as you like in your search for the best mortgage deal for you.
- If you use your own bank, you might be eligible for customer loyalty perks like a low-down-payment mortgage.
- Working with your bank also means less paperwork and faster processing.
What are the disadvantages of finding your own mortgage lender?
It is your responsibility to do all the shopping. This can be incredibly stressful, especially if this is your first time applying for a mortgage. You must also fill out a new application and apply to each lending institution separately rather than submitting a single application package.
If you are still unsure, talk to a few brokers near you and get quotes from a few lenders to determine which option is most suitable for you.
Just keep in mind that finding a mortgage with a reasonable rate is merely the first step of the process. You will need someone to guide you through each step of the mortgage process, so look for a mortgage partner you can rely on and feel comfortable working with.
Looking for the Top-Rated Mortgage Lender in Alton, Illinois?
Are you looking for a reputable mortgage lender in Alton, Illinois to help you with the home buying process? If so, the experts at Compass Mortgage are here to help. We take the time to understand your background and financial situation to help you get the best mortgage for your needs. Contact us today at (877) 793-9362 to setup an initial consultation.