If you’re planning to buy a home in Orem, Utah, working with a mortgage broker is a wise move.
Navigating the borrowing process can be a challenge, especially if you’re a first-time homebuyer. Having an experienced broker on your side can make all the difference, as their skill in matchmaking ensures a personalized mortgage solution. They know how to help you find the lender offering the best deal, protecting your hard-earned cash. Read to see how the right mortgage broker can save you money.
What Is a Mortgage Broker?
Mortgage brokers don’t provide funds to qualified borrowers – that’s the role played by mortgage lenders. A broker is more like a loan officer, acting as an intermediary between would-be homebuyers and lenders. But while their duties are similar, they aren’t identical.
Loan officers work for a specific bank, credit union or other lender, and they’re limited offering the lending options of that institution. In contrast, brokers are independent professionals who have access to a variety of mortgage lenders. They can shop around for the ideal home loan option, one that suits a borrower’s current financial situation.
How a Mortgage Broker Can Save You Money
While you can request quotes from multiple mortgage lenders and compare them on your own, determining which is the best offer may be rather difficult. That’s where a broker comes in – they can leverage their lending relationships to negotiate favorable interest rates and loan terms for homebuyers. A broker can:
- Save you money on fees by getting a lender to waive some or all the customary charges
- Save you money on your home loan by finding a better borrowing option than you could secure
In addition, they can look for mortgage lenders that offer special programs for first-time homebuyers, which have the potential to save you money. And given their expertise, a broker can help you avoid the pitfalls that come with some loans, saving you from costly mistakes.
How Much Does a Mortgage Broker Cost?
A broker’s commission varies, but the typical cost is between 0.50 percent and 2.75 percent of the home loan principal. However, in many cases, borrowers pay nothing for the service.
Compensation for a broker usually comes from the mortgage lender, but in the rare instance when the borrower is responsible for paying, it isn’t a burden. The fee can be rolled into the mortgage, resulting in no addition to the closing costs on a home.
Having an experienced professional do the legwork for you, finding the best deal on a mortgage, is clearly beneficial. If you’re looking to buy a home in Orem, the greater Salt Lake City area or elsewhere in northern Utah, partnering with Intercap Lending can help you maximize your savings. To speak with a friendly and knowledgeable mortgage broker, contact us today.