For the past couple of years, mortgage brokers have faced intense scrutiny under the public eye. In fact, even 48% of first time homebuyers choose not to use their professional services. Their decisions may put them in a greater disadvantage given that the process of buying a home is a stressful and costly venture. But there’s this underlying fear that getting help might actually do more financial damage than being independent. Of course, these concerns are valid. The mortgage industry has been riddled with a lot of controversies, scandals, and issues that lead to the drastic decrease of its trustworthiness. However, there are a few allegations and beliefs that are simply unfounded, unreasonable, and downright false.
Hence, we have gathered some of the biggest misconceptions about mortgage brokers and reveal the truth behind them. If you’re ready, let’s get started!
- Mortgage banks are safer and better because they know you better than mortgage brokers
Mortgage brokers are licensed professionals, just like your typical police officers, teachers, and bankers. They’re trained to look at your case objectively and determine the best deals and offers that will align with your interests and needs. Of course, they may suggest mortgage rates that may be leaning more towards their own personal gain, but ultimately, the client will have the last say. Also, you can always have a family mortgage broker on your home-buying endeavor, if proven and well-established reputation is what you’re looking for.
- There’s no such thing as a “free consultation” from mortgage brokers
The complete premise is that mortgage brokers must have something in return for their services. So, if they advertise their services as “free”, it probably has hidden fees. Nothing is given away for free, right? Well, not always. Most mortgage brokers earn their money through commissions. It will not affect the price of your mortgage rate as their commission will come from the bank once a successful purchase has been made.
- Brokers always go for the cheapest rate
Mortgage brokers go for the best option available in the market, not necessarily the cheapest. Unless of course if you explicitly instruct them to only consider the lowest rates, then they will. But say you have a good credit score, complete documents, and financial stability. Of course, they’re going to give you rates that will suit your situation. There are a lot of factors involved in making a suggestion. But trust that a good mortgage broker will not give you an option that is either too high or too low for you.
- Brokers will go for the highest compensation rate
This is perhaps the biggest concern among all of interested clients. Yes, there are instances where the broker and the client simply do not meet eye to eye. However, let us not generalize. As mentioned before, mortgage brokers are licensed professionals. They are as credible, reliable, and trained as any profession in the world. Besides, who would be foolish enough to put their entire career on the line by making a client frustrated and dissatisfied? The key takeaway is that the right mortgage broker will introduce you to the right deals. They will not recommend a mortgage rate that is way out of their client’s financial reach.
We hope we cleared any misunderstanding and misconception about mortgage brokers in this blog. If you have clarifications or questions about the world of mortgaging and housing, please feel free to reach out to a local mortgage broker today. Most especially, if you are living in the southend and would like to have further assistance regarding this matter, do not hesitate to ask for help. There are many southend mortgage brokers readily available for you.