Go direct to a lender, or use a finance broker?
When shopping for a mortgage, you typically have two options: you can apply through a bank lender, or use the services of a mortgage broker. A bank lender is typically an employee who can get the mortgage directly from the bank. A skilled finance broker, on the other hand, is an independent contractor who acts as a liaison between you and the bank.
At first glance, using a bank lender seems the best idea. After all, why pass through someone else when you can get the mortgage directly from the bank? However, using a mortgage broker is actually a much better idea. Here are four reasons to use a mortgage broker when shopping for a mortgage.
A typical mortgage broker has direct access to a variety of lenders. As such, they can offer you an opportunity to examine a number of lending options before making your choice. This increases the likelihood of you getting exactly what you want. If you are to conduct this research on your own, you can spend weeks visiting different lenders. With a mortgage broker, you can get all the information in a single visit. This actually saves your precious time.
PERSONALIZED MORTGAGE RECOMMENDATIONS
A mortgage broker can enable you to get the mortgage which can best serve your needs. They do this by first examining your financial status, and then recommending a plan which can best suit you. Given their access to a variety of lenders, brokers are better positioned to get for you the most suitable loans. A bank lender doesn’t have such options because they only work for one lender.
Therefore to get the best personalized mortgage advice, a mortgage broker is best suited to the job. A motivated broker will ensure that you get the best mortgage possible – so that you recommend him or her to your friends and family.
A mortgage broker can help you to get the best deal possible. For starters, they enable you to compare the interest rates offered by different lenders. This makes it easier for you to select the best rates for your needs.
Secondly, a mortgage broker can actually negotiate with the lender on your behalf. Given their intimate knowledge of the market, they can get better terms and interest rates than you would if you negotiated directly with the bank.
Finally, mortgage brokers are usually knowledgeable on the latest incentives, promos and discounts which lenders are offering. As such, they can inform you about any sales or promotions which may be of interest to you. You can actually get great deals courtesy of these promos.
Before choosing a mortgage, you often want the best advice possible. This is because there will be subtle aspects of the market, interest rates and other terms which you find unclear. Mortgage brokers usually offer independent, objective and unbiased advice. There are two major reasons for this.
First of all, mortgage brokers aren’t allied to a specific lender. As such, they don’t have an interest in making a specific lender look good. They want to offer the most objective information possible so that you can make the best choice for your needs. A bank lender usually doesn’t have as much objectivity. Their core purpose is to sign off as many loans as they can for their employer – this means they can never be objective.
Secondly, mortgage brokers operate within a competitive industry. The slightest negative review can greatly damage their reputation. As such, no broker wants a client reporting that they misadvised them into getting a bad loan. Therefore, they try their utmost to enable the client to make the best decision possible.
When a mortgage broker offers you their expert tips, recommendations or advice, you rest assure that it is the most objective advice possible. This is the kind of advice you can base on to make critical decisions about the mortgage.
In a nutshell, those are the four primary reasons to use a mortgage broker. If you are shopping for a mortgage, you don’t need to hustle yourself. Simply find an expert mortgage broker like those at Mortgage Hero, and the entire process will become a breeze. They will expose you to a variety of lenders, enable you to choose the best one, and even negotiate for you the most favourable terms and interest rates possible. In the end, you will find a far better deal than you could have ever managed on your own.