The Joys of a Mortgage Broker
I'm hearing lots of good things these days about using a mortgage broker.
A friend of mine is self-employed. So is his spouse. As a result, getting a mortgage was turning into a huge hassle, when they bought their first house. They even approached the bank that they both did their business banking with, and still they got the run-around.
They decided to make use of a well-recommended mortgage broker. They met with the broker; gave her all the relevant details; then, they sat back and said a few prayers (if the rumors are true)! In the end, the mortgage broker actually got them a mortgage AT THEIR BANK, which they had not been able to get themselves. Not only that, but the broker got them a preferred rate on their mortgage.
They can't speak highly enough about their experience.
Now, this is an unusual story. But, I've been hearing good reports all around, regarding making use of mortgage brokers. However, you do have to make sure that the person is reputable. You also have to make sure that they are operating in your best interests. After all, they make their money by being paid by the LENDER. This means that they can have an incentive to place your mortgage with a company who may not have the best rate. Personally, I'd be sure to check that the broker is certified by a reputable professional body. I'd also be prepared to walk, if anything about the deal didn't "smell" right.
Having said that, I've been hearing stories of people getting really great rates through a broker. Sometimes, that's because a broker will have found a small but solid lender, who is offering really good interest rates in order to get into the mortgage lending business. Hey, I'm willing to support a new business, if it's going to save me a bunch of money.