If you’re planning a move, especially if you’re a first-time home buyer, you might be wondering what’s the difference when it comes to a mortgage broker vs bank?
Well, the truth is that there are many reasons you might choose a Mortgage Broker over directly dealing with a bank. Before we get into that however, let’s cover the basics.
What Is A Mortgage Broker?
In short, a mortgage broker is an expert in the home-buying industry. They offer unique benefits, such as in-depth subject matter knowledge and access to a network of lenders. This allows you to get the best mortgage and rate for your situation.
For those in unique situations, such as people with bruised credit or first-time home buyers, a mortgage broker is often sought after. However, even people in typical situations should seek the help and advice provided by a mortgage broker.
A bank is never going to recommend their competitor in order for you to get a better deal. Even if the competition has a more suitable offer. A mortgage broker’s access to multiple lenders is reason enough to seek one out, but their expertise and experience are equally invaluable.
Mortgage brokers are typically paid commission through the lender as well. As a result, there might be no cost to you for utilizing one.
Mortgage Broker Vs Bank
So, what are the major differences between getting your mortgage from a broker and going directly through your bank?
It’s likely you already have a history with your bank. Thanks to them having direct access to your account and credit history, there is a perception that you can move through the process slightly faster and in a more straightforward fashion. Historically, relationships matter and certainly when acquiring a business loan, they still do. But branch level employees no longer have the autonomy to approve your loan. All mortgage applications are sent to a centralized department for approval. Implied relationship or not, your application will be considered based on its merit, and based on the bank’s internal risk criteria.
You should always make sure you’re comfortable with a mortgage broker before moving forward and that your goals align. Solid Ground offers a free consultation to make sure everything is a good fit or to simply answer any questions you might have.
The Benefits of A Mortgage Broker
Here are a few of the main benefits of partnering with a mortgage broker:
Waive the Fees
When setting up a new mortgage, there are a number of different fees that can quickly add up to hundreds to thousands of dollars. These include origination fees, application fees, and appraisal fees. Mortgage brokers can sometimes get lenders to waive these fees, saving you a ton of money.
Access to Multiple Lenders
We have already touched on the fact that brokers have access to a network of lenders. If you’re thinking of shopping around for the best rates yourself, a broker will save you the legwork and might have access to exclusive lenders.
Never get Blindsided
Legal documents aren’t exactly a light read, and mortgages are no different. Scanning through the pages, paragraphs, and fine print full of legal jargon is an exhausting task, especially if you don’t know what to look for.
Brokers know these documents like the back of their hand and can help you avoid contracts with onerous payment terms.
Find A Mortgage Broker You Can Trust
The bottom line: there are plenty of benefits that comes with using a mortgage broker. Finding one you can trust is crucial though. You don’t want to end up with a broker who is setting you up with a more expensive loan because it comes with a higher commission.
This is the biggest purchase of your life and you need to be sure the trust is there.
At Solid Ground, building trust begins with us making sure you have answers for all the questions you might have.