While home values have decreased, the upward trajectory of prices over the past seven years still leaves many buyers with sticker shock. States continue to post double-digit home price increases that create challenges for those considering a home purchase. Oftentimes, buyers are left looking around for more affordable options.
That’s when the buyer turns to you—their real estate agent—to not only find their dream home, but also help them afford it.
Helping buyers purchase the best home for their hard-earned money has always been the key to real estate success—whether that’s discovering the perfect neighborhood or negotiating the final sale price. The ability to stretch buying power is more crucial than ever, and savvy agents are encouraging buyers to partner with independent mortgage brokers.
Independent mortgage brokers are industry experts who assist buyers throughout the entire home purchase process. These professionals not only understand the landscape of their community and region, but they also have access to superior financing, wholesale rates, elite service, technology advancements and more.
If you’re looking for ways to help your buyer afford more, a mortgage broker is your best bet to protect against slow turn times, impersonal service and higher rates with big banks and retail lenders. Here’s why:
1. Payments suited to the individual
Mortgage brokers pull your buyer’s credit one time then shop dozens of wholesale pricing and product options to ensure your buyer receives the best rate available for their individual circumstance. The monthly mortgage payment can often be an obstacle when purchasing a home, however—with the help of a mortgage broker—lower payments mean the buyer can afford more overall.
2. Flexible loan options
Traditionally, getting a great loan for a self-employed buyer is difficult – between analyzing tax returns and tax deductions, and working within one set of guidelines and overlays – from a mega retail lender or large bank.
However, with the flexibility to choose between multiple lenders, a mortgage broker can find the right loan option for all of your buyers, including those who are self-employed. With more loan options and a simple process, buyers can feel confident they will receive the most affordable loan for their needs.
3. Competitive edge in a bidding war
In both metropolitan areas and smaller regions, homebuyers face competitive bidding wars – and the ability to raise an offer a bit higher can make all the difference in whether a buyer’s offer is accepted.
For example, one 1,300 square feet house in Richmond listed at $309,500 had 30 showings within three days and received 10 offers by the weekend. That resulted in a bidding war between homebuyers that drove the price up $50,000—which translated to $300 more each month.
While that’s still a significant amount, a homebuyer can likely manage that kind of increase with the right rate and mortgage insurance if they exceed 80% loan to value. By working with an independent mortgage broker, your buyer has the ability to offer a more competitive bid with a lower rate and higher loan amount to secure their dream home.
Partner with a local mortgage broker today
If you want your homebuyer to have a smooth and seamless process, along with lower wholesale rates, more buying power and the ability to shop around, partnering with a local mortgage broker is key. A mortgage broker will allow your homebuyer to obtain flexible loan options to fit their needs that give them a competitive edge when placing an offer.
Buyers are not the only ones who reap the benefits of working with a local mortgage broker. In fact, 90% of real estate agents who worked with an independent mortgage broker would recommend the partnership to future buyers.
Not sure where to start? Visit FindAMortgageBroker.com to learn more about the advantages of working with a mortgage broker and to help you get more closings—more quickly.