If you’re getting ready to buy a home, you may be wondering whether a bank is the best way to get a home loan Tucson. The truth is that most home loans come from banks, but your bank may not be the best choice for the lowest rates, points or other fees associated with a loan. There are a number of different ways that you can find a better deal and one of those ways is with the help of a broker.
The Benefits of Hiring a Broker
A broker is someone who has relationships with different lending institutions. He or she can shop around with different lenders based on your credit score, debt to income ratio and down payment availability. You might be thinking that this is great, but there are comparison tools online that can do that for you. But, brokers do offer more services than this.
A broker understands the ins and outs of the lending process and its his or her job to make sure that you understand it as well. Your broker can explain any verbiage that you don’t understand, what points are all about, what offers are good for you and what aren’t and more. Your broker can also help you find alternative loans, such as FHA, VA or USDA loans, that provide you with lower down payment options. Your banks and comparison sites won’t provide any of these services for you.
The Cons of Hiring a Broker
Using a broker can have its downsides. In many cases, you pay the broker to find you a loan, although some brokers are paid by lenders for bringing you to them. This can actually lead to a broker working with lenders who may not have the best loans for you as the broker does want to make the most money off of your loan. Also, a broker will work with limited lenders, and you have no limitations when you use the Internet to find a loan.
It may be in your best interest to use a combination of the Internet and a broker to find the best home loan Tucson. If you find a great deal, then you can go with that. If your broker finds you a great deal, then you can use their services instead.
