If you are in search of a mortgage to purchase a home, or maybe you want to renew an existing mortgage on your property, which option will you go for?... a mortgage broker or a traditional bank?
The major difference between the two is that a bank mortgage officer provides only the products offered by his or her institution while a mortgage broker acts as an intermediary that liaises with different lenders. Mortgage brokers are paid a referral fee by the lenders they liaise with.
In this article, we will shed light on the top reasons why you should use a mortgage broker instead of a traditional bank.
Mortgage brokers focus on home loans and they are paid based on commission. Thus, they do their best to ensure that they get you the best rate because that’s the only way they’ll get paid. Their network and relationship with large numbers of lenders also make it possible for them to help you find the most favorable rates and terms for your mortgage. You’ll be able to save more money if you have higher number of lenders competing to give you home loan.
Mortgage brokers can work with their clients on a one-on-one basis. This gives them the opportunity to attend to their clients’ unique needs and find the lender that will provide the right loan that aligns with their clients’ needs. Mortgage brokers submit their clients’ requests to lenders and once the requests are accepted, the broker will work with the lenders until the loans are released.
Furthermore, mortgage brokers help their clients to find a lender that will accept home loans that traditional banks reject. They also help their clients to secure lower interest rates from lenders. Mortgage brokers’ services save homeowners the stress of finding the most appropriate mortgage rate and terms that align with their specific needs.
On the other hand, banks handle all forms of loans. As a result, they may not have the expertise to provide home loans the way mortgage brokers do. Traditional bank officers can only process mortgage loans that are provided by their employer.
Unlike mortgage brokers, loan officers at traditional banks have access to limited number of loans. Their activities are also hindered by regulations and criteria that they must adhere to. This limits the number of home loans that they have access to.
Moreover, since banks do work with a network of lenders, thus, home loan applications that they receive usually originate from a single lending institution.
If you are ready to buy your dream home, or if you want to renew the existing loan on your property, then you need to hire the service of a mortgage professional. By working with a mortgage professional, you will be able to save a lot of time and stress. You will also be able to get the lowest rates and fees for your mortgage needs. When you allow your home loan needs to be handled by a mortgage broker, you will have one less thing to worry about in your home buying process. Contact us today to get prequalified!
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