Century 21 – Blackwell & Co.

Why You Should Meet With a Mortgage Broker- Whether You're Buying a Home Now or Later

June 9, 2023
Allison Vassey

Reasons to meet with a mortgage broker now, before buying a home.

Buying a home will be one of the biggest and most important decisions in your life. In 2022, 87% of buyers financed their home.  Financing can easily become the most intimidating parts of the home buying process. Of course, we all wish we had enough cash to pay for everything, but the truth is, without a mortgage to secure the purchase, most people cannot afford to buy a home. You will want to make sure you understand the process of how to Buy a Home, starting with scheduling an appointment with a mortgage broker. 

A mortgage broker is a financial advisor that specializes in mortgage lending. A mortgage broker can secure you the best rates and pricing, because they work with a variety of mortgage lenders that offer different loan programs, rates, and qualifying guidelines. If you are just starting to think about buying a home, and not yet ready to take action, talking to a lender can still be very valuable for many reasons. 

You’ll Learn About Various Loan Types

There are many different types of loans (mortgages) available, each one having its pros and cons. The internet has become a “one-stop-shop” for information, but no matter how much “Googling” you do, nothing will compare to speaking with a professional that processes loans each day. BEFORE you begin searching for a home, it is strongly advised to speak with a lender first.. that way you can determine how much money you may qualify to borrow. 

There are different loan  assistance programs that you may be eligible for, such as those for first-time homebuyers. Be sure to shop around, and speak with multiple lenders in your area, ensuring you get the most pricing and rates. Knowledge is power. The more you know and understand about your financing options, the more prepared you will be. Even if you are months to years away from purchasing a home, talking to an expert will help you discover an option that’s best for you.

You’ll Determine a Price Range for Home Searches

The goal of a mortgage broker; better yet any mortgage lender, is to help you get “purchase ready”. This means, getting all your finances in order to qualify for the best mortgage possible, one that suits your financial budget, with favorable terms and monthly payments. A mortgage broker can help you get pre-approved , and determine exactly how much you can afford. This is necessary for setting realistic expectations as you begin your home search. When you have a clear understanding of how much home you can afford, you prevent yourself from disappointment- you won’t get your heart set on a a property, only to find out it’s out of your price range.

If you are ready to buy now and you have a pre-approval letter, sellers are more likely to accept your offer, because it shows you have the financial means to afford it. Speaking with a mortgage broker can and getting pre-approved will provide invaluable information on budgeting and financial planning leading up to the purchase of your home.

You Can Create an Action Plan to Improve Your Finances

Before you begin your journey towards homeownership, you will need to speak with a mortgage broker. Most consumers have a pre-conceived thought, that you have to have perfect credit and a lot of cash for a down payment to buy a home. But that couldn’t be farther from the truth. Heather McRae, a senior loan officer at Chicago Financial Services, states, “I often begin working with prospective home buyer one or two years in advance, and if there are credit items that need to be addressed, like how to boost your credit score to obtain the best rate and terms, or the best way to handle an account that has gone to collections—I guide people on how to best tackle these items.”

Meeting with a potential lender early on can get you a head start on improving your finances. If you already have a great credit score and financial status, a mortgage broker can share additional tips on how to improve them more, which can ensure even better rates and save you more money. 

Bottom Line: Preparation is everything!

If you are ready to buy a home, or want to wait a while longer, do not wait until the last minute to speak with a mortgage broker. If homeownership is one of your long-term goals, you could be doing yourself a disservice by not speaking with a mortgage broker sooner than later. You just might be surprised at how close you are to owning a home. Do not let the pre-conceived idea that “you have to have perfect credit score and a large down payment,” prevent you from taking the first steps towards purchasing the house of your dreams. 

Get ahead of the game and schedule an appointment to meet with a mortgage broker. The mortgage application process can be lengthy, so sitting down with a lender now can help to clarify the process and get you “purchase-ready”. In today’s market, education and preparedness are more necessary to give you peace of mind and make the home buying process go more smoothly when you’re ready to start looking for a home.