Getting ready to buy your first home is exciting! But it also comes with some complicated decisions. Getting a mortgage is a huge decision to make and you’ll likely be paying off your mortgage for 30 + years. Family, friends and colleagues will all have advice to give you. But how will you interpret their advice and what if you disagree with their suggestions but still need guidance?

This is where a mortgage broker can help.  Generally, a mortgage broker acts as a middleman between a mortgage lender and homebuyer. Mortgage brokers can alleviate many of the stressors that occur during the home buying process.

If you’re not someone who likes to spend their weekends pouring over interest rates and comparing bank products, having a mortgage broker who will do the leg work for you is essential.  It is also important to find a mortgage broker who understands your unique financial profile.

If you are in your 20’s or 30’s, your personal financial position will look very different from an older couple in their 40’s or 50’s who might be looking at an investment property or planning to refinance to pay for a renovation.

A good mortgage broker will understand that this might be your first home and will take the time to explain any jargon and go over the paperwork with you.  Some financial advisors also offer mortgage broking services with the added advantage that they will look at your financial situation more holistically, taking into account student debts and your long-term personal and financial goals.

Your mortgage broker can assess the products available from different lenders, negotiate terms and compare competitive mortgage rates.  A mortgage broker will do the rate shopping for you. When it comes to mortgage rates even a small difference could save thousands of dollars in interest over the lifetime of the loan.  Another bonus of using a mortgage broker is that they may be able to get lenders to relinquish some of their fees such as appraisal and application fees.

It can be beneficial to start working with your mortgage broker before you start looking for a specific property, that way your mortgage broker can help you to understand how much you can borrow and a realistic value for your specific financial situation.

At the end of the day while your parents, friends and colleagues may have your best interests at heart but they are unlikely to have the practical knowledge, skills and training to give advice about such an important decision. A mortgage broker can explain the array of factors, subtleties and fine print that will inevitably be involved in taking out a mortgage. They will also be able to discuss the pros and cons of a variety of loans allowing you to select the best mortgage for you.

Unlike a bank where someone is paid a salary whether you get the loan or not, an experienced mortgage broker is running a small business and reputation is paramount so they are highly motivated to find the perfect home loan to meet your needs. Going to see a mortgage broker is also not going to put you out of pocket as they are paid a commission from the lender you eventually decide to go with.

If you are getting ready to buy your first home and would like the assistance of a mortgage broker you can contact the friendly lending team at  ActonLendingSolutions.

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