Do I Need A Mortgage Broker If I Have Bad Credit and Want A Loan
When it comes to wondering why you may need a mortgage broker for a bad credit home loan, it’s best to know what brokers actually do. A mortgage broker can search all over the market for loans which are suited to you – and they’re also useful in finding the best lender if you have bad credit.
What are the benefits of using a broker if you have bad credit?
Well for starters, a mortgage broker will often know the current financial market and they’re also likely to know of the latest bad credit loan deals, plus, they may know which lenders are okay with difficult or unusual situations such as self employment.
And that’s not all they can do. They’ll be able to offer useful advice and as your advocate with mortgage lenders when you have bad credit and are in need of finance, which can make the experience much easier and far less stressful for you.
With their skills, they can also sometimes get you better deals on bad credit home loans than you may have gotten if you went to the lender alone.
FAQ for people seeking bad credit home loans
Can benefit from having a mortgage broker if I have bad credit?
Next, you may ask yourself if you’ll benefit from having a broker on your side. The answer is quite simple, pretty much anyone with bad credit will be able to access much more of the specialised lending market that will take on bad credit customers.
They can also be good if you rely on freelance earnings (which may or may not be consistent), if you’re raising a mortgage on a second property to pay off the deposit on your first, or if you need a bridging loan, which is a type of short term funding option.
Make sure you do your research
In some cases, a bank offering loans to people with bad credit may be part of a group of lenders that they only recommend their mortgages through specialised mortgage brokers. Other brokers may recommend loans from a small or limited selection of lenders.
They can still claim to be a broker who searches the whole market, as long as their selection is on the market. If this happens, you could miss out on loads of great properties and also some great deals.
As services vary from agency to agency, you could miss out on deals. So, it may be a good idea to ask which lenders are included and excluded by a broker before you hire.
Lastly, some agencies expect payment from their client, whereas others gain their fee from the bank or lender. It may be worth checking how a broker wishes to be paid before you sign up to any deals, as you might end up with an unexpected bill at the end of the day.