Purchasing property is no small feat. For any borrower, the buying process can be time-consuming and mind-numbing. So much money and paperwork are poured into becoming a first-time home and property owner or landlord. But some individuals can aid you in the process.
This is where a mortgage broker can be your real estate best friend. A broker is a bridge between you and potential lenders to find the best mortgage situation for you. Getting a mortgage broker can bring your real estate goals closer to reality. They will use all their relationships and resources to make the buying process easier for you.
A broker can help make the process less complicated. Less demanding. Less time-consuming. They take on all the headaches lenders and regulations can pose with your real estate agent. At the same time, they work with you to understand the process better. Just think of your broker as your real estate avatar – ready at a moment’s notice to update you on the property and stages of the process.
Here are some reasons why a mortgage broker is your secret weapon for buying any property.
Relationship Between Brokers and Lenders is Powerful
When working with a mortgage broker, you can take full advantage of their relationships with multiple lenders. These established relationships with so many lenders are beneficial as your broker knows how they work. Your broker knows a lender:
- Are particular about who and what they will lend on
- How your information should be presented to secure a loan
- What programs the lender(s) may offer
These relationships between lenders and your broker are very reciprocal as there tends to be a high volume of deals they work on together. This is a win for you as lenders are more likely to work with you because of that relationship. Their relationships can even make the process easier and clear-cut due to their shared history.
Another advantage of the broker-lender relationship is your broker can tell you which lender would be best in your situation. Your mortgage broker will tell you off the bat how affordable the property is and what your chances are to get loan approval. This truthfulness can stir you in the direction of the right lender for you.
A broker can also be helpful if any issues arise during the loan process especially when it comes to the coordination between all parties. Having a track record with the lender and an established relationship can make an unexpected issue disappear within hours (if not days). This clears the way for you and your broker to move ahead with the buying process.
Sit Back as the Broker Drives
While broker-lender relationships are beneficial to the process, one thing that those relationships cannot protect you from – mountains of paperwork. The process can leave little to no room for error financially. That’s where your mortgage broker comes into play. They can help you with dealing with all the paperwork and documentation needed to buy the property.
Your broker works with your real estate agent to make the process as painless as possible. They get everyone involved on the same page, including underwriters and your lender. If the process involves big property and money, your team can coordinate with title companies and attorneys. Having everyone on the same page can help you reach your goals.
All this coordination between parties is no small feat. Some lenders treat mortgage brokers as their official gatekeepers when it comes to finding suitable clients such as yourself. You must remember lenders are just as skittish about the purchasing process as you are. But your broker can ward off this skittish between you and the lenders by getting special rates from lenders. They can even waive some (if not all) fees associated with a mortgage, including origination and appraisal fees. Despite this advantage, most mortgage brokers, just like real estate agents and realtors, do collect a fee for helping you during the buying process.
Again, the business volume between your broker and the lender makes this process much smoother and accessible for you.
Takes on Guessing Game Headaches
With your mortgage broker driving your deal, now, you can leave all the demanding work and negotiations to them and your real estate agent. Your broker and agent work in tandem to get the best deal for you. While your agent works to buy the property, your broker is all about making sure everything is to get the funding. Your broker is on your side. They make sure your deal is structured properly. They do this so you can:
- Maximize the loan amount for the need to buy the property along with extra costs
- Get the lowest rate possible (best for monthly payments and contract length)
- Check both yours and the property’s records so no unknown issues hinder the loan process
Your mortgage broker spends a good part of their time applying with multiple lenders and completing forms to make your goals of owning property a reality. Once lenders begin to respond, then, they help with finding the right contact for your needs and help you navigate the loan process.
Knowing the Loan Workarounds
Before the loan process begins, you may find yourself not being a lender’s ideal borrower. That’s where your mortgage broker comes in to advocate for you. They help with issues such as:
- Credit rating or status
- Issues with the property
- Income eligibility, etc.
A broker will not only work through those issues but structure your deal to help you the most. They even step in as an advisor to help you meet certain needs to qualify for financing. Usually, you and your broker will discuss and work on creative financing solutions. Many times, your mortgage broker will ask whether your mortgage will be:
- Short-term or long-term
- Adding value or renovating a property
- Trading up (multifamily units to single-family home; retail space to a commercial area)
This is important when it comes to buying or even refinancing a property (again, this is where the lender-broker relationship comes into play). As discussed before, they check to make sure all the underwriting, regulations and paperwork are in order. They want your real estate goals to be met as much as you. At the end of the day, buying a property isn’t only a financial gain for you but for them as well.
Purchasing a home or building can be a tricky maze of “legalese” and dwindling savings. But having a mortgage broker by your side can make the entire process so simple and easy. They are your advocate and confidant when it comes to getting a property no matter its age or size.
Just remember, picking the right mortgage broker is like finding a mate. The relationship must be equal parts comfortability and loyalty to create a favorable partnership. You need someone who will work with AND for you to make the buying process less anxiety-filled.
And that’s where Pacific Shore Capital comes in. We can be your real estate spouse (without all the extra stuff). We’ll make sure buying any property helps you gain knowledge about the purchasing process. If you want more real estate info and opinion, you can check out our podcast.