Advantage of a Broker Over a Bank.
If you’re considering getting a mortgage, you surely weighed up whether to go with a broker or your local bank. While both do ultimately finance your mortgage, there are certain advantages that come with mortgage brokers that banks just cannot provide. And since securing the lowest possible mortgage is the determining factor, often mortgage brokers are the better choice. Here are six reasons why.
Think of mortgage brokers as a one-stop-stop. They are easy to work with, and efficient. All you need is one meeting to determine what you require and what that would entail. The necessary documentation can then be sent to them via email.
You won’t have to pay anything to your broker; the service is completely free. Instead, they receive their compensation from the institution which provides the final mortgage, leaving more money in your pocket to go towards the mortgage itself.
Brokers aren’t tied to any one lending institution, and so they can approach numerous lenders to secure the best possible rates. On the other hand, banks or credit unions can only offer their own products at very specific rates.
Mortgage brokers are specialists in their field; they have years of experience and are well-versed in the regulations and best practices. They also have in-depth expertise when working with borrowers who may have special needs.
Because mortgage brokers do so much business so regularly, they frequently receive discounts from the lenders they work with most. These savings are passed down to you in the form of lower mortgage rates than you would have received if you approached a bank independently.
Removed from the policies and processes of lenders, brokers are free to discuss with you advice on a broad range of financial institutions. They act as invaluable guides, advising on the products best suited to you.
Ultimately, the choice is yours to make. Banks do offer the familiarity of dealing with staff you see on a regular basis, and they might already have some of the documentation required to complete your application because of it. However, if you’re looking for options, advice and no obligation, a mortgage broker might be the way forward.