Why You Should Use a Mortgage Broker Over a Bank

5 Benefits to Working with a Mortgage Broker over a Bank

Friday Jun 11, 2021

If you are in the market for a home loan, you must have heard about mortgage brokers and brokerage firms.

While most people know about such institutions, very few of them are aware of they really do and the crucial differences between a loan/mortgage broker and a bank. Apart from that, even fewer individuals know anything about the advantages of working with mortgage brokers instead of banks.

As a general rule, a good mortgage broker or adviser will try and guide you throughout the mortgage application process. Apart from that, they will always offer their expert advice to help make sure that you make an informed decision without stress and hassle.

This way, you will have plenty of more time to focus on the prime objective of finding your dream home without wasting time on red tape and paperwork.

Let us go through the top five major advantages of using a mortgage broker for all of your home mortgage needs:

  1. Your Brokers Will Do the Legwork for You

    Your mortgage brokers will look around and find the perfect home loan solution for your particular needs and circumstances. Apart from that, they will also support you throughout the whole application and subsequent settlement process.

    This is a lot of legwork, and it involves extensive paperwork as well as sourcing pre-approval bids. Moreover, they will also assist you in case you are interested in applying for any sort of government grants or other incentives.

    Your brokers will have an excellent system in place for ensuring that you are always kept very well informed throughout the entire loan application process. This way, they will save you both time and money that you might be able to gainfully spend elsewhere.

    Bankers, on the other hand, will wait for you to come to them and only offer limited financial loans and products that are available there. In this case, you will have to run around and check out all the different banks and other options to find your ideal solution.

    If you don’t have sufficient experience in doing so, you might miss out on a highly lucrative deal.

  2. Your Brokers Will Always Work for You Instead of Their Bank

    All great mortgage brokers and advisers maintain great relationships with banks as well as other financial lending institutions. However, the crucial difference here is that they never work for the bank per se. Since you are their client, they will work for you and ensure that your interests always get their undivided attention. You can rest assured that your brokers will find you that ideal home loan that will best suit your specific circumstances.

    Since they have access to a broad array of mortgage products, your agents will be able to offer you the best possible value in terms of repayment amounts, interest rates, and loan products.

  3. Swift and Straightforward Loan Comparisons

    Your friendly neighborhood mortgage broker will take the time and the trouble to methodically explore your individual aims, objectives, and financial circumstances.

    Since these brokers have both access and full knowledge about a whole range of loans available with both banks and other lenders, they will give you quick comparisons on the same.

    From large scale global institutions to local banks to non-banking financial institutions, they have all the relevant information at their fingertips.

    In a nutshell, meeting even one broker means getting access to lots of banks and even more loan options. However, working with a bank instead of a broker means substantially reduced access to all other options.

  4. A Mortgage Broker Offers More Than a Mere Loan

    Many prospective homebuyers tend to forget that it is not just the mortgage alone but the vast number of steps and decisions that have to be taken along the way. Think of a loan as a part of a complicated puzzle where every piece has its own place in an intricate pattern. Every decision will have a profound effect on your long-term financial plans. This is because a typical home mortgage may stretch to 25 years or even more.

    Here, it is your mortgage broker and adviser’s responsibility to guide you unerringly through this complex process. In fact, your adviser will help to make sure that you feel comfortable and well-informed throughout this all-important journey.

    Unlike a bank, a broker’s job does not stop once you sign on the dotted line. They will help you to understand the repercussions of the home loan application process. They will make sure that they are able to decide upon a mortgage structure as well as a repayment schedule that you can afford. Apart from that, your adviser will also be at hand to negotiate on your behalf so that you get excellent rates and other incentives.

    Think of your broker along the lines of befriending a local when you are on vacation in a different country.

  5. They Offer Expert Advice

    These people are through professionals. In short, they and have been doing this for a living and have plenty of professional expertise and experience in dealing with all kinds of loans and other home financing products. They will use their expertise and vast knowledge to make sure that they get the very best deal available and you will enjoy the benefits of their financial acumen for decades afterward.

    A reliable broker would be able to thoroughly and painstakingly explain the different subtleties of the loan options and lending institutions. Ultimately, it will make a massive difference to your bottom line, and you will be able to save thousands of extra dollars in interest repayments. Outlining the many different pros and cons of various options will be very valuable in determining the perfect finance option that will best suit your lifestyle.

In a nutshell, opting for a bank or a mortgage broker is your personal decision. Albeit having said that, there is no denying the fact that a mortgage broker offers a level of flexibility and breadth of choice that no single bank can possibly match.

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