Why Choose a Mortgage Broker Instead of a Bank?
There are many important decisions involved in the process of buying a home. This can be both an exciting and stressful time, so it’s important to know ahead of time the decisions you will face and familiarize yourself with the options available to you at each point of your journey.
One of these crucial decisions is the option of working with a mortgage broker instead of working directly with the bank. This is a personal choice with many different points to consider, but ultimately, you need to make the wisest choice for your unique situation. Here are some areas to consider.
A mortgage broker will ‘hold your hand’ throughout the process
Making sure your loan is in place can be a complicated process, with multiple deadlines, and what will feel by the end like an endless stream of forms for your tired hand to fill out. Enlisting the services of a mortgage broker can be a great help in giving you an extra hand and someone who’s on your team when it comes to ensuring this process goes as smoothly as possible. Mortgage brokers carry out this type of work day in, day out, and are familiar with the hoops you may need to jump through and the ins and outs of applying for and securing a competitive home loan. They’ll be able to advise you on the current home loan products on the market and give you a professional opinion on the best options for your specific financial and personal circumstances. They’ll also be able to work with the bank on your behalf, ensuring all forms are submitted on time and any questions throughout the processed are answered, whether they’re asked by you or by the book.
Their market familiarity on a daily basis also allows brokers to point out the negative sides to specific loans, as well as their strengths. This is something the average home loan lender will not do to the same degree, as they’re more focused on promoting the loan’s features and advantages with the hopes of securing you as an interest-paying customer. A mortgage broker offers you a greater chance of securing the best home loan rate available on the market.
Securing a home loan, whether for the first time or the tenth time, can be a complex process. A trusted mortgage broker can take much of the stress out of this process for you and help you to reach a settlement with the smallest amount of issues as possible.
Whilst most mortgage brokers won’t advertise this too loudly, the other benefit they bring with them is their direct relationship with many builders, often relationships that have been built up over years of mutual trust. This long-term relationship can help to right the ship if there’s any hiccups in the loan application process, which is a must when it comes to the finer details that can take you by surprise.
What does a mortgage broker do and what does a bank loan officer do?
A mortgage broker is an independent party who works with a wide range of lenders to secure and complete loans. They’re able to negotiate with multiple lenders, as opposed to being locked into a singular set of loan products and options as a bank loan officer would be. Mortgage brokers have the benefit of seeing across a competitive market and identifying strong loan products that best suit their clients’ needs. In comparison, when working with a bank loan officer, that officer is only ever going to be able to offer you loan products and features that their bank specifically offers. If there’s a more competitive rate on the market or a comparable home loan with better features, it’s not going to be a bank loan officer who points it out to you – it would be a mortgage broker instead, offering you a direct and measurable advantage.
It’s important to understand that mortgage brokers are able to work with many financial lending institutions, which gives them another advantage over approaching a bank to apply for a loan directly. This can provide you with a greater negotiating ability and the opportunity to evaluate all of the loan options available to you from many lenders. In comparison, if you approach a single bank directly and choose to make a loan application in this manner, or a simple online loan, you’ll be limited to the products and services that bank can offer you alone.
Reasons why a mortgage broker is the better choice
There are many reasons why working with a mortgage broker instead of a bank loan officer is the better choice, including…
– Personalised service and recommendations – a mortgage broker will familiarise themselves with your personal financial situation and loan goals and look for loan products to suit. They’ll be able to assist you in locking in the best home loan rates on the market.
– Assistance with the administrative side – mortgage brokers are also able to handle much of the paperwork that make up a loan application process, saving you time and energy
– Negotiating power – mortgage brokers can discuss your specific needs with the bank on your behalf to place you in a better position of power when it comes to making a final decision.
– Experience – mortgage brokers often bring years of industry experience to the table, which puts you in a far better position than relying only on your own experience and knowledge. This experience can save you time and money and from making irreparable financial decisions when it comes to how to approach a home loan.
– Follow up – as mortgage brokers work on commission that is triggered when a loan is complete, they’re highly motivated to follow up and ensure the loan application process continues to move smoothly from all angles.
When buying a home, whether it’s your first or your fifth, there are many things to consider. Some of them are exciting – how will we decorate? – whilst others are less so – what kind of home loan rate can I expect to lock in? However, it’s important not to let yourself get caught up in the fun and excitement of a new home purchase without first ensuring your home loan is going to give you what you need over the course of its term. A home loan is a huge financial commitment, and going into the loan application process with as many advantages as possible can save you from many a sleepless night. Engaging the services of a reliable and trustworthy mortgage broker will allow you to rest assured that your mortgage needs are being met to the highest standard possible. Let them worry about the loan paper – now go choose that new lounge for your new living space instead!
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