Buying a home is one of the biggest financial commitments you’ll ever make. It can…
You’ve decided that you’re ready to purchase a house. You’ve started looking at listings online, you’re visiting open houses, and maybe you already have a real estate agent showing you homes. But many home shoppers miss a crucial first step in the home buying process: meeting with a mortgage broker before looking at properties.
What Is a Mortgage Broker?
A mortgage broker is a financial adviser who specializes in mortgage lending. They are able to match a borrower—a homebuyer like you—with the right mortgage, because they work with a variety of mortgage lenders that offer different loan programs, qualifying guidelines, and interest rates. A mortgage broker works to secure you the most competitive rates and pricing.
Simply put, it’s a really good idea to meet with a good mortgage broker—and that’s us at New Way Mortgage. We can help you find the right mortgage that best meets your specific needs and situation and get you the best rate with the lowest fees.
Why Should You Meet with a Mortgage Broker First?
The main reason to meet with a mortgage broker before you even start looking at homes is to get pre-approved for a mortgage. A mortgage preapproval is written proof from a lender that you qualify for a mortgage of a specified amount.
To obtain a pre-approval, your mortgage broker will review your financial information, including your credit, employment history, income, assets, and debts.
From that review, we’ll be able to tell you how much home you can afford (the purchase price), how much money you’ll need to put down and have in reserves, and also give you a full rundown of your estimated monthly payment for that home.
All in all, having a mortgage pre-approval letter in hand makes you a more attractive home buyer.
Why? Well, a pre-approval letter lets real estate agents know that you’re approved for a mortgage in a specific price range. It also makes you much more appealing to home sellers, giving your offer more weight in a bidding war. For all parties, there is less concern that your financing could fall through at the last minute.
Watch this video with Aaron Clowes of New Way Mortgage, where he discusses various scenarios on how not meeting with a mortgage broker first could cost you in missing out on buying your dream home.
Top Reasons to Work with a Mortgage Broker
Working with an experienced mortgage broker can save you time and money when buying a home. Let’s look at the top reasons why using a mortgage broker benefits you more than working with a direct lender, such as a bank or other financial institution:
- A mortgage broker can offer loans from a variety of lenders. Unlike banks that offer only their own loan products, mortgage brokers have a variety of loan options to offer home buyers. This means you can choose the program that is the best fit for your home financing needs.
- A mortgage broker has access to the best mortgage rates. A broker’s job is to work on your behalf with several lenders to find the most competitive interest rates and to negotiate the terms that best fit your needs. This makes the mortgage process easier for you, and it can save you a lot of money.
- You save time when using a mortgage broker. If you’re in a rush to get your loan closed, the last place you want to go is a mortgage lender. At New Way Mortgage, we can shop your loan with a variety of lenders that have quick turn times—and avoid ones that don’t. Working with our team will save you time and hassle by managing the entire mortgage process.
- Mortgage brokers can help homebuyers with their unique financial situations. If you’re self-employed, have inconsistent income, or are a real estate investor, for example, you’re considered a non-traditional borrower. Brokers can present the best loan products for buyers like you; we know our lenders and can pair you with the right loan products accordingly.
If you are wondering what it costs to talk to a mortgage broker, you should know that it is a service-based business, and that brokers get paid only when your transaction closes. Meeting with the team at New Way Mortgage to get valuable advice and guidance is actually free.
As the very first step in your homebuying journey, reach out to the team at New Way Mortgage for a conversation. We can assess your needs and situation in less than 10 minutes and direct you on your path toward homeownership.
If you would like to buy a house in the greater Sacramento area, the strategic team at New Way Mortgage can help. Our team has access to all types of loan programs, along with the most competitive interest rates. Let us match you with the mortgage that makes the most sense for your home buying situation; give us a call today at 916-465-6639.