Buying a new residential property is a difficult task, especially if you are a first time buyer. The process is rewarding, but it is tiring and complicated as well. Quite a few of you do not know the details, and cannot figure out where to start. However, if you use a mortgage broker, you will not have to face many difficulties because he can considerably simplify the process for you. He will assist you at every stage, advise you on different aspects and will do most of the work for you.  So other than making decisions, not much will be left on your part.

Basically, a mortgage broker represents you at a bank or a mortgage agency, and forms a link between you and the lender. He works with multiple lenders and has full knowledge of their offered deals.  This helps him in comparing the many mortgages available in the market, hence allowing him to easily recommend a suitable product for you.

Duties of a Mortgage Broker

• He will help you in estimating the maximum amount which you should borrow. This amount should be such that you can easily afford it in the years to come.
• He will give you complete details of the process, and will brief you about various mortgages available in the market.
• He can help you in choosing a suitable product for yourself which does not create a burden on you in the long run.
• He will contact plenty of lenders on your behalf and will try to find a suitable one for you.
• He can compare the deals offered by both banks and agencies in terms of rates, conditions and payment schedules.
• He will help you in getting a pre-approval which will give you a rate hold for four months.
• He will do all the paper work for you.
• He will make sure you get the lowest possible interest rate.

Fees for a Mortgage Broker

A mortgage broker will not charge you anything for his services. Obviously, he does not work for free and is paid. His fees are to be covered by the lending agency, but he will be paid only after you close the deal with a lender whom he recommended. You can think of this as a type of commission, which a mortgage broker gets for bringing clients to the lender.

Reasons for Hiring a Mortgage Broker

• He has many years of experience in his pocket.
• He can help you save time.
• He will find the best deal for you.