Why You Should Hire An Independent Mortgage Lender

Many people looking to finance their homes opt to Banks will offer you the traditional mortgage because they are the safest choice for them. However, you may not be aware of other financing opportunities that might be better for you as a borrower.

On the other hand, lending firms have information on many other borrowing options like USDA loans. Armed with this information, you can choose the right financing for you.

What Is An Independent Mortgage Broker?

Compared to bankers, these mortgage brokers know all the information related to home financing and mortgages. They also communicate directly with some wholesale lenders. Ordinary home buyers normally cannot access these loans. With the assistance of a mortgage broker, they can find the option that is custom-fit to their needs and resources. They will submit your mortgage application and submit it to various lenders to be able to get you a quote.

These are the specific benefits of working with mortgage brokers.

1: You Get Access To Hundreds Of Loan Options

You do not want to be presented only with loans that have terms not necessarily friendly to you. You want the kind of mortgage that has the best interest rates without making it difficult for you to pay off the monthly fees. You can find a wide range of financing options with a mortgage broker.

2: Banks Only Want To Lend You Money

Bankers will encourage you to get a classic loan because they earn from them. They will most likely not offer other financing options because of this. On the other hand, independent mortgage brokers will offer more options because they will not get paid to get a specific loan. Thus, you are more likely to find financing that suits your preferences more.

3: You Get Personal, One-on-One Attention

Bankers are available only in certain hours of the day, and they usually have other tasks to take care of. Thus, you will need an appointment to get in touch with them. On the other hand, mortgage brokers are available when you need them and will be focused on getting you the best mortgage loans. This means they can support you in filing paperwork and can give you updates on your application progress. If you are working and have a family, you need someone who is flexible enough to accommodate your schedule.

While banks are still one of the options to get financing for your home purchase, you might find other, more suitable loans when you work with a mortgage broker.

What Insurances Can I Have With My Mortgage?

If you die while the insurance policy is in effect, then your remaining family will no longer have to worry about paying your mortgage since this is already covered by your insurance policy. You can either choose term life insurance or a mortgage life insurance. The only difference here is the beneficiary of the policy.

In term life insurance, you get to choose who among your family members will be the recipient of the policy proceeds in the event that you die. The problem here, of course, is that its up to this family member how he or she intends to use the proceeds. He can continue to pay the mortgage or totally disregard it. On the other hand, a mortgage life insurance names your lender as the beneficiary so youll know that the proceeds of your insurance policy will go to the payment of the remaining balance in your mortgage.

Buildings Insurance This is a compulsory type of insurance that goes with home mortgages. It is typically used in situations where your home got damaged because of certain circumstances such as flooding or fire. If you dont have this type of insurance, you will still be paying your mortgage while also shouldering the expenses needed for the repair of your home.

Income Protection Policy There will always be instances when your capacity to pay can be compromised. As such, an income protection policy should help you retain a certain percentage of your income during such times that you are unemployed. You can set up a policy that will pay you a certain percentage based on your income or a set monthly figure.

Critical Illness Policy Similar to an income protection policy, but more specific to a critical health condition that leaves you incapacitated and unable to work, a critical illness policy can also help ensure the security of your mortgage.

Getting the right insurance can help protect your investment. It can also help guarantee that your family will continue to enjoy the home you got for them.