Why you should hire a mortgage broker to get a Home Equity Loan

Getting a home equity loan (sometimes referred to as a second mortgage) can be a great way to access some of your home’s value that has been accumulating over the years as property values have gone up and as you have been paying down your mortgage. Home equity loans allow you to borrow large sums of money at reasonable interest rates for a variety of purposes from funding home renovations to debt consolidation. 

And while it may be tempting and convenient to go to your bank or financial institution to get one of these loans, you will usually be far better off if you work with a professional mortgage broker instead. 

A mortgage broker works for you!

If you were to go to your bank (or any other lender) to get your home equity loan, the only products that they will offer you are their own products, and they won’t necessarily have any incentive to give you the best interest rates. 

But when you work with a mortgage broker, you will have access to dozens of lenders. Your mortgage broker will compare the rates of many lenders and even negotiate on your behalf to help get you the best interest rate possible. This is because your mortgage broker works for you – not the lender. 

Your mortgage broker can offer specialty products

Traditional financial institutions such as banks and credit unions have very strict guidelines when they are determining who will qualify for a home equity loan and who won’t. If you have a stable income and a good credit rating, changes are that you won’t have much difficulty in getting the loan that you need.

But what if you are self-employed, or have poor credit? These things can make getting a home equity loan through a traditional lender very difficult – if not impossible. But mortgage brokers work with a variety of different types of lenders – including lenders who specialize in helping those who may have trouble getting a loan through a bank. 

Your mortgage broker will advise you on the best product for you

Home equity loans can be an excellent solution for many people. But they are not the right solution for everyone. In some cases, you may be better off getting a mortgage refinance or a home equity line of credit. Before selling you a product, a good mortgage broker will assess your situation and then recommend that product that makes the most sense for your unique situation. 

Because mortgage brokers specialize in mortgage products, they can quickly determine which products are right for you. 

Your mortgage broker will coach and assist you

If you are not familiar with financial products such as home equity loans, the process may be a bit confusing and even daunting. But when you work with a professional mortgage broker, they will act as a sort of coach. They will ensure that you have all the relevant financial information and documents that the lender requires, and they will help you with the application itself making sure that it’s complete and accurate. 

Your mortgage broker is also there to answer any questions that you may have about your home equity loan so that you can feel confident that you’ve made the right choice. 

Contact us today

Are you interested in learning more about a home equity loan and whether it’s the right tool for you? If so, Contact Sure Loan For You.