Less than half of all children in America are being raised in two-parent homes these days, and if you're one of those single-parent households, you face a unique set of challenges, particularly when applying for a home loan. With only one income (even if you have two or three jobs), you have to do more to balance your budget and take care of your family. That doesn't mean, however, that you don't earn the same right to the American dream as the more traditional households. One way you can put yourself in a better position to secure that coveted home loan is by working with a mortgage broker, instead of taking on the task by yourself.
1. They'll Help You Apply With The Right Lenders
Because your single-income household doesn't fit the traditional home buyer profile, not every lender will be willing to work with you. A broker can find the right type of lender for you, based on the immediate information you provide. As a single parent, you might not have been able to save for a large down payment, which also narrows down the list of lenders you'll qualify with. Does a fixed-rate or adjustable mortgage work better for your budget and circumstances? If you opt for fixed and interest rates drop, will you be in a good position to refinance?
Knowing which lenders to apply with and which ones to avoid means you're going to get an approval faster and more efficiently, but it also means keeping more of your short and long-term options open and that's important to a single parent.
2. You Need The Connections A Mortgage Broker Has
Like most consumers, you probably don't have inside connections with your local banks and other lending institutions, but a broker does. A broker most likely has longstanding professional relationships with all the right contacts, giving you an instant connection and inside access. That's not something you can really accomplish on your own.
3. They'll Save You A Considerable Amount Of Time
Applying for a home loan can be a long and tedious process, but if you have to apply to a number of lenders, the length of time and work is even greater. As a single parent, you likely don't have the free time needed to apply for a loan all over town and the next town over; you need to narrow down the choices and focus on them intently. Mortgage brokers select lenders they know you'll be a good fit with, streamlining the process and saving you the time and trouble of searching yourself.
4. A Mortgage Broker Negotiates On Your Behalf
Brokers don't just play matchmaker between you and potential lenders, they can actually negotiate terms, forging a better arrangement than you might know how to on your own. For example, if the down payment you've worked so hard to put together falls short of a lender's expectations, a broker can haggle on your behalf, demonstrating to the lender how hard you work and how your bills are consistently paid on time. They might even be able to garner you a waiver on a fee or two, thereby lowering the total cost of the loan.
Whereas, when applying by yourself, everything appears to be written in stone, from the interest rate to the final fee, when a broker intervenes, things are negotiable. Even if you're the type of person who feels comfortable negotiating with professional financiers, do you know enough about the subject to really act in your own best interest? A broker does know and engages in such negotiations all the time, paving the way for the best possible terms on your mortgage.
5. You'll Be Spared The Frustrating Parts
Trying to obtain a loan can be frustrating for anyone, not just single parents or even those with damaged credit. The money is needed to make important changes in your life; thus, you're on the edge of your seat over the process. Going it alone could mean minor mistakes on paperwork, adding up to major delays, applying with the wrong type of lender or applying for the wrong type of loan and/or thinking you're never going to qualify, when, in fact, you're already qualified under specific circumstances. A lot of people don't even like math to begin with, making financial calculations and decisions a vexing issue. So much of the frustration and computation is removed when you have a mortgage broker working on your behalf.
Although you're probably used to doing things on your own, you really don't have to tackle a home loan by yourself. Click here to learn more about the resources and advantages a mortgage broker offers.