For most people, a home is the biggest purchase they will ever make. When you buy a home, and get a mortgage, you are signing a 30-year contract involving hundreds of thousands of dollars. That’s why it is so important to get every last detail right and to make sure you are making the right decisions when shopping for a mortgage.

Mortgage brokers can be a helpful tool when it comes time to buy a house—they’re basically a personal shopper for your mortgage. They will guide you through the entire process of applying for a mortgage, submitting paperwork, and choosing which loan option and lender makes the most sense for you. There are many benefits to working with a mortgage broker:

1. Your Broker Will Advise You on Your Mortgage.

Before the application process, your broker should get to know you and your financial situation. Then, they will make recommendations on what you can actually afford for your down payment and your monthly mortgage payments. After discussing your financial situation, the broker will be able to make recommendations on the best loan type for you, like an FHA or USDA. They will also advise if they think you would not qualify for a mortgage, as well as how to improve your financial profile to be able to get approved.

2. Your Broker Will Get You Pre-Qualified.

Getting pre-qualified is not a requirement, but it is a huge asset when looking for a house. Your broker will let you know what you can realistically afford and get approved for. They can also point you in the direction of a realtor, builder, or neighborhood that will work well with your budget. (Have you ever seen the realtors on HGTV that show buyers houses that are $100,000 above the budget?!) Being pre-qualified also makes it easier to get the house you want—both realtors and home sellers will view you as a more qualified buyer. In the event of a bidding war, your offer will mean more than a non-qualified buyer’s because the seller knows you can get the necessary loan to back the offer.

3. Your Broker Will Help with Paperwork.

Mortgages mean tons and tons of paperwork. The application requires certain documents (W-2s, tax returns, bank statements, etc.,) and then the lender may request additional documentation to clarify certain things. Your broker will guide you through all of this. Remember, your broker has years of experience handling this documentation, while most people only apply for a few mortgages in their lifetime. The broker will be able to tell you specifically what documentation an underwriter needs, whether it is a letter of explanation or a gift affidavit.

4. Your Broker Will Simplify the Process of Shopping for a Loan.

Shopping for a loan is important; looking at more than one lender will increase competition, which means you are more likely to get a lower rate. According to Freddie Mac, looking at 5 or more lenders can save you around $3,000. Your broker will do all of the work for you on this part. After they speak to a few lenders, they should give you some options, depending on what you are looking for in your loan. Your broker should be able to present you a loan with the lowest interest rate, a loan with the fastest possible closing date (which will likely not have the best interest rate,) and possibly a loan that doesn’t have a great interest rate, but that you could lower by buying points. The loan you pick will be based on your personal situation.

5. Your Broker Will Do the Hard Work.

One of the hardest parts of looking for a mortgage is shopping around to find the best possible interest rate. If you go to your bank, they will only offer you one rate, which means you would have to go apply somewhere else to compare. Your mortgage broker can do this for you. If they submit your file to one lender and aren’t pleased with the interest rate, it is a lot easier for the broker to submit the application somewhere else. Another benefit of this is that the broker will pull your credit report and include it in the application to everyone, instead of you having to apply multiple places and each of them doing a credit pull. Having multiple credit checks in a short period of time can be a deterrent to some people for shopping around, but when you use a broker you can avoid that completely.

6. Your Broker Has Access to More Products Than a Bank.

Most of the time, a bank will only offer a few programs. If you don’t fit into the requirements for those loans, or they just aren’t the best possible fit for you, you can end up with a higher interest rate. When a mortgage broker looks at your financial situation, their goal is to find the best possible fit for you. Some programs will be great for you for the first couple of years, but after that point in time may cost more than they need to. Your broker will look at what you will actually need to pay, and they may suggest programs you weren’t considering.

7. Your Broker Can Help You Close Faster.

Moving day can be stressful, but the last thing you need is for it to be delayed. When you work with a broker, they will stay on top of the entire process to make sure you are approved and clear to close faster than if you use a bank. The broker will speak to the loan processor, underwriter, and lenders on an almost daily basis while the loan is being processed. This means they will know and be able to notify you about any issues or conditions involved with the loan sooner than a bank would. Bonus: it is not your responsibility to call any of these people to check on the process! Your broker can do it all for you.

8. Your Broker Can Help Manage Mortgage Costs.

You know your monthly mortgage payment will cost money, but have you thought about the cost of closing the mortgage? Some loans may need cash to close or end up with fees from the seller/builder. There is also the option of paying down points on the interest rate. Your broker will handle all of these for you, and, in some cases, might be able to reduce some of these costs. Some loan programs and brokers will let you factor the cost to close into the overall loan amount so that you don’t have to bring any cash to closing. One of the most important jobs of a mortgage broker is making sure you know exactly what closing will cost you down to the cent well in advance so you are prepared for closing day.

9. Your Broker Can Help If Your Financial Situation is Not Conventional.

Many loan programs have minimum requirements and paperwork requirements that not everyone can meet. If you have a rocky or poor credit history, you’re self-employed, or you’re not a United States Citizen, you might not qualify for many programs. A mortgage broker, however, offers a lot more flexibility. There are programs made specifically for self-employed buyers, non-citizen buyers, and low credit score buyers. The broker will work with you and the lender to get you approved.

10. Your Broker May Offer Incentives.

Ask if your broker offers any incentives. Sometimes brokers will partner with local realtors or builders to be able to offer you incentives on loans. This is another benefit of being pre-qualified—if you know ahead of time that a specific realtor or builder comes with a guaranteed 2% purchase price or $3,000 incentive, you can focus your search there first.

As you can see, there are many benefits to working with a mortgage broker, but the overall theme is that they take on the stress and time intensive work of the application process for you. They are your advocate during the entire process, and they will handle the relationship between the lenders, processors, and underwriters.

If you are still on the fence about whether or not to use a broker, the general rule of thumb is to speak to three different brokers before choosing one. Ask about what services they offer, how their fees are structured, if they offer any incentives, and, most importantly, what their application process looks like. If a broker can give you a clear idea of what their process looks like, it’s a good indication that they have an organized, streamlined application process—which will save you time and money.

CTC Mortgage currently offers mortgages in Florida, Georgia, North Carolina, and South Carolina. If you live in one of those states and are interested in learning more about our services, please comment below! We will reach out to you within 24 hours of your comment. We also have an “ask a professional” option under the company tab in the menu above, if you have any specific questions you would like answered.

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