Those who are in the market for a mortgage will likely be inundated with information coming from all different sides. That's not very helpful, considering that taking out a mortgage is already stressful because it is a large-scale commitment that involves your reputation and your financial future. Making a life-altering decision like choosing a mortgage product can overwhelm just about anyone, leaving them very much in need of some helpful guidance.
The good news is that there are professionals that mortgage-hunters can turn to for the advice they need, and the internet makes connecting with them easier than ever before. Mortgage brokers earn their living by helping buyers select the right mortgage, and they now use the latest in artificial intelligence technology to help them do it. Still, using a mortgage broker isn't right for everyone. Here are some factors to consider if you are in the market for a mortgage and deciding whether or not to use a mortgage broker, and a look at how technology can help you get the best deal.
The Complexities of Choosing a Mortgage
Potential homeowners have many different options from which to choose when seeking a mortgage. Not all mortgages are created equal, and there may be features of one product that make it qualitatively different than another mortgage. At the same time, buyers do not frequently take out mortgages so they may not be well-versed in the terms of the loan to understand what the best deal is for them. This is a where a mortgage broker comes in handy. The broker has likely dealt with thousands of mortgages over the course of their career and will have built up an expertise in each individual product. That helps them cut down on the confusion for their customers by filtering out mortgage products that don't meet their needs – and their help often comes at no cost to the consumer.
The Technological Advantage
Shopping around between products takes time and involves quite a bit of information gathering. This requires plenty of effort and can be frustrating at times. Mortgage brokers can take some of the work out of finding a mortgage since their job is to know and track different mortgage products. In fact, today's online mortgage brokers use machine learning and artificial intelligence systems to speed up the process of selecting a mortgage for their clients. In some cases, it's now possible to research, select and apply for a mortgage in minutes entirely online. With the latest in AI tools handling the bulk of the heavy lifting, even first-time homebuyers can choose from thousands of mortgage products with confidence that they're getting the best possible deal.
When to Go it Alone
There are also factors that could counsel against using a mortgage broker to obtain your loan. For starters, mortgage brokers may not always be able to get you the best terms on your loans. Second, depending on the number of clients that they have, mortgage brokers may not always be able to provide the best service. Third, you never know what incentives the broker may have to steer your mortgage to a certain lender.
However, when you take the time to do your due diligence on a mortgage broker before hiring them, many of these possible pitfalls can go away. If you interview the broker ahead of time like you would any other professional, you can get the answers that you need. You should never be afraid to ask them the tough questions necessary to learn what you need to know. If the broker is online, there should be plenty of public information about their customers' satisfaction. In addition, mortgage brokers that operate exclusively online generally use sophisticated computer algorithms in recommending mortgage products, so they are likely to offer impartial guidance to begin with.
The Bottom Line
The only major reason not to turn to a mortgage broker is the concern that they may not have the customer's best interests at heart. With more and more mortgage brokers shifting to AI-driven online operations, however, that's a situation that's becoming rarer with each passing day. The bottom line is that most consumers will lack the expertise necessary to weigh their options, and mortgage brokers can bridge the knowledge gap for them at no cost. When you consider that it's possible to get advice from an online mortgage broker within minutes and with no obligation, it seems like the choice is easy and that you have everything to gain and little to lose.