Buying a house is a significant investment that should not be taken for granted. Before settling on a home or a financing plan, you should research thoroughly. Consulting a professional such as a mortgage broker is often a good option. However, there is a lot of false information going around with regards to mortgage brokers. Thus, many people are skeptical about hiring them. This text reveals common myths surrounding mortgage brokers and why you should not believe them.
Agents usually recommend the highest commission loan
Some people assume that since agents earn on a mortgage basis, they will always recommend to their clients the loan which will earn them the highest commission. It is not true, as Denver mortgage brokers care for their customers and they present to them the best options as per their requests and circumstances. In the end, the choice is left to the client and not the broker.
All mortgage brokers are the same
If you ever had an unpleasant experience with an agent in the past, do not restrain from hiring one today. One bad experience does not reflect the situation in the entire industry. A lot of mortgage brokers out there are dedicated to giving their clients the best services. Before hiring one, ensure that you are keen not to fall for dubious providers who are only after money.
Banks are more lenient than mortgage brokers
Some people believe that it is easier for a bank to lend you money more than a broker since they are dealing with their own money. However, ask yourself this, if you had your own money, would you take risk with it? Obviously, it’s your money, so you would prefer to risk less. Mortgage brokers, on the other hand, are enthusiastic in helping their clients to find a good loan that they can afford.
Mortgage brokers deal with questionable lenders
Another myth is that mortgage brokers have arrangements with shady lenders to get you good deals. Most mortgage brokers help you land fabulous deals with mainstream lenders because they shop around for these deals. Some also have connections to smaller lenders who are not well known, but their little publicity should not make you question their deals. Some of these lenders have been around for several decades.
People with poor credit are the only ones who should hire mortgage brokers
Although some assume that those with credit issues are the only people who should use a mortgage broker, it is not true. If you have a low credit rating, hiring a mortgage broker is a good idea, but bad credit is not a requirement. Most people who use agents can access bank loans, but they understand that an agent can save you time and money.
Mortgage brokers deal with a single lender
Some mortgage brokers deal with only one bank or lender, but independent agents don’t. A broker has the opportunity of deciding whether to be independent or under a creditor. The difference is that an independent bank can access deals across the industry while the counterpart can only deal with a single lender.