According to a 2022 survey by the National Association of Mortgage Brokers (NAMB), about 57% of homeowners who took out a mortgage in the past year used a mortgage broker, while 43% went directly to a lender. This suggests that more homeowners are choosing to use mortgage brokers than in the past.
There are a few reasons why homeowners might choose to use a mortgage broker. First, mortgage brokers have access to a wider range of lenders and loan programs than individual homeowners. This means that they can often find a better deal for their clients. Second, mortgage brokers can help homeowners navigate the complex mortgage process. This can be especially helpful for first-time homebuyers or those with less than perfect credit.
However, there are also some drawbacks to using a mortgage broker. First, mortgage brokers typically charge a fee for their services. This fee can range from 1% to 2% of the loan amount. Second, the mortgage process can take longer when you work with a mortgage broker, as the broker needs to get quotes from multiple lenders.
Ultimately, the decision of whether to use a mortgage broker or a lender is a personal one. There are pros and cons to both options, and the best choice for you will depend on your individual circumstances.
Here are some additional factors to consider when choosing between a mortgage broker and a lender:
- Your credit score: Mortgage brokers typically have access to a wider range of lenders, so if you have a low credit score, you may be able to get a better deal with a mortgage broker.
- Your loan amount: If you are borrowing a large amount of money, you may want to work with a lender who has experience with large loans.
- Your time frame: If you are in a hurry to close on a loan, you may want to work with a lender who can process your application quickly.
- Your location: If you are located in a rural area, you may have fewer options for lenders, so you may want to work with a mortgage broker who can access a wider range of lenders.
We hope this helps you decide who will assist you with your new mortgage loan.