Need A Hand? Here’s Why Mortgage Lenders And Brokers Are Important In The Homebuying Process
Unless you’ve been saving up for decades or have inherited property in your name, first-time home buyers need a mortgage loan to help pay for their home. This is a common practice in real estate, as 86% of buyers in the market require financing to buy their own home.
With so many mortgage deals in New York’s real estate market, knowing certain things like the importance of mortgage lenders or the difference between mortgage lenders and mortgage brokers can be confusing for first-time buyers. Here are some of the basic things you should know before jumping into any mortgage agreement, and why you should hire a mortgage broker in New York.
Mortgage Lender Vs. Mortgage Broker
A mortgage lender can be a bank or lending company that offers home loans. They are the financial institutions that provide you with the funds to purchase a home in the market. Not all mortgage lenders are alike, which is why it’s important to shop around and compare loan offers. Factors like terms, interest rates, repayment schedules, and other criteria can vary with time, so it’s important to always see what’s available at any given point.
Mortgage brokers, on the other hand, are like the middle-man that guides you to the best deals. They don’t work for one mortgage lender in particular, so they’re the ones who can shop around for you and recommend the best mortgage deal for your financial situation. They’re also the ones who take a look at your application and can give helpful advice to make your application more likely to be approved by the lender of your choice.
Do I Need A Mortgage Lender To Buy a House In New York?
Majority of home buyers in the market cannot afford to buy a house without a mortgage. But technically speaking, if you’ve found a house on the market that you can afford to pay with your savings alone, then you don’t need to take out a loan from a bank to pay for the house. And if you’re undergoing alternative buying methods like using seller financing or rent-to-own properties, you could skip out on getting a loan.
For most cases, however, getting a mortgage is necessary to buying a house. You’ll find plenty of mortgage deals on the market, so if you find one deal that doesn’t meet your needs, you can always shop around for another.
Why Hire A Mortgage Broker In New York?
Although they’re not required for you to find a mortgage lender, mortgage brokers save you time, effort, and funds by shopping on your behalf and getting you the best deals. A few unique benefits mortgage brokers can bring include:
Weigh Out All Your Options
On your own, you may limit yourself to apply to major banks in your area for a home loan. This is to help you save time and effort weighing out your options. Brokers, on the other hand, have a wide network of mortgage lenders, so they can provide you with more options that you might not have considered on your own.
Find A Loan Tailored To Your Financial Situation
If you have a credit score that’s isn’t at its best, it can be difficult to shop around for loans tailored to your situation. Brokers can use their connections with mortgage lenders to find loans that can work for your financial situation.
Better Access To Exclusive Deals
When you work with mortgage brokers that have generated more business for lenders, these brokers may give you exclusive mortgage deals you won’t be able to find on your own.
Have A Professional Screen Your Application
Mortgage brokers do not have access to the actual mortgage lender’s process and simply direct you to the best deals. However, with knowledge of how mortgages work, they can take a look at your application and advise you which mortgages are best for your situation.
There are some limitations to hiring a mortgage broker. While they can lead you to the best deals you qualify for, it’s ultimately up to the mortgage lender to approve your loan.
Need More Info?
Are you a first-time home buyer thinking, “What’s the best mortgage lender near me?” No worries, our team at Procopio Team at Hunt Real Estate is here to help.
Our team of real estate agents can help you through your mortgage loan application. As our client, we guide you through every step of the homebuying process. We recommend getting pre-approved for a loan before checking out listings to help manage your expectations and give you a realistic budget we can work with. We’ll help you get in touch with mortgage brokers, lenders, and all the people necessary to find the right home for you and your household.
Ready to get started? Contact Procopio Team at Hunt Real Estate today to find your first home.