May 16, 2021
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Finance

Reasons to Hire a Mortgage Broker

Shopping for a home loan in Singapore can be tough. That’s why current and future homeowners have been turning to mortgage brokers in ever-increasing numbers. Not sure it’s worth the extra cost? Read on to find out about the most crucial benefits of working with a qualified mortgage broker to make a more informed decision.

Save Time

Buyers who want to find the best rates for their own home loans need to complete a separate application for each lender, then wait for each of them to go through. Working with a broker requires filling out just one application. The broker will then offer detailed comparisons and recommendations based on the client’s unique financial situation to help him or her find the lender that offers the best deal.

Save Money

Mortgage brokers get paid to represent their clients’ interests. They act as knowledgeable consultants and agents and have access to a wide range of mortgage products, which means brokers can help clients find the best loans to meet their needs. Brokers have an in-depth understanding of all available loan products and industry standards, so they’re able to come up with innovative strategies for saving their clients’ money.

Tailored Recommendations

Every borrower is different, but most financial service providers offer cookie-cutter solutions. Mortgage brokers are different. They take the time to get to know borrowers’ financial situations so they can make custom-tailored recommendations about which mortgage products will be the best fit. In some cases, they can also help clients with less-than-ideal credit histories obtain financing successfully.

Industry Connections

Since mortgage brokers work in the field of finance, they have industry connections that are out of the average home buyer’s reach. These connections can come in handy, no matter how well-qualified a buyer happens to be. Many brokers can negotiate with new lenders to reduce, or even eliminate, fees, saving their clients hundreds of dollars.

Better Access

Not all lenders work directly with consumers. Some rely exclusively on mortgage brokers to find suitable clients, often offering them better rates for generating business and vetting borrowers. These lenders don’t offer retail mortgages. The only way home buyers can find out whether they qualify is to work with a well-connected broker.

Specialized Knowledge

Understanding financial markets and the mortgage loan application process can be a challenge. There’s no need for buyers to navigate this complex field alone. Mortgage brokers have an intimate understanding of the industry and they can break down the process in layman’s terms so that their clients will know exactly what terms they’re signing up for before taking out a loan.

Eliminate Hassles

Mortgage brokers are experts at helping clients navigate complex financial situations. They’re great at smoothing out bumps along the way to make life easier for clients, no matter what their credit histories look like. Of course, even the best broker won’t be able to guarantee that his or her client will qualify for a home loan. However, eligible applicants find that working with a broker eliminates a lot of headaches.

The Bottom Line

Not all lenders work with mortgage brokers, and neither do all borrowers. That said, finding a reputable broker is still the best way to get a good deal on a home loan without wasting a ton of time and money.