Getting a mortgage is no easy deal. There is a lot to consider and a lot to process. Hunting for the best mortgage can be more exhausting than finding your dream home. But there is a way to simplify the mortgage process. It is to hire professionals who can act as middlemen between you and the bank, give you varied options, and find you the best deals.
But as with any service, mortgage brokers, too, come at a price. So you may ask, why not just deal directly with the bank? You can most definitely do, but there are merits and demerits to both the methods.
Let us give you comprehensive information on the differences between the two and the benefits of using a mortgage broker.
Who Is A Mortgage Broker?
Mortgage brokers are licensed professionals who act as a liaison between you and the banks and help you find the best loan terms and interest rates available in the mortgage market. They provide consultation on how you can qualify for loans and present you with a broader choice of lenders to choose from.
They could get paid a fixed fee, hourly fee, commission by the lenders, or a percentage of the loan amount granted.
What Is The Difference Between Direct Bank Deals And Deals Through A Mortgage Broker?
Banks
The major advantages of dealing with banks directly are:
- Cost savings on broker fees
- Access to exclusive direct-only deals
When you choose to work with a bank directly, you will have to choose the bank and start the mortgage application process. If the bank rejects your application, you will have to pick another bank and start the process all over again or find ways to qualify for the mortgage.
As you can see, if you do not have the proper information at first hand, direct deals can be quite burdening, especially when it’s your first time mortgage.
You will have limited choices and may not be aware of all the information you need to make the best deal.
Mortgage brokers
In the case of hiring mortgage brokers, though, the broker will give you a wide range of options and all the information you need. A whole market broker can give you immediate access to a wide range of mortgage products. They can also help you find specialized lenders in case of bad credit issues.
Some of the advantages of hiring a mortgage broker are:
- The whole of market comparison
- Access to exclusive deals that are available only via brokers.
- Mortgage consultation and advice
Benefits of a Mortgage Broker
You can save a lot of time spent on the manual work involved in research and applications by delegating it to mortgage brokers. Time saved is money saved as well.
You get knowledge on how to deal with unique mortgage situations. Certain personal or legal complications like ongoing divorce, job changes, and low income can make it challenging to get a mortgage. Brokers can help you find the best ways to deal with such situations.
Mortgage brokers can negotiate for you and get you a better deal.
They can help protect hour credit score with some wise decisions. For instance, your credit score could be affected if you have more number of rejected applications. Mortgage brokers can make sure there are no mistakes in your applications. They can help your mortgage get approved in the first try.
If you do feel hiring a mortgage broker would be a great idea, make sure you associate with a licensed broker with access to the whole market.
