Getting a mortgage is a very common way to help aspiring home buyers purchase a home. If you are looking to get a mortgage, you can either go straight to the bank and ask for a loan or you can find a mortgage broker to help guide you through the mortgage process and find the best deal for you. If you are familiar with mortgages and know exactly what you want, going straight to the bank may benefit you, while those who need some guidance will be benefitted by investing in a mortgage broker.
What is a mortgage broker?
A mortgage broker’s job is to serve as an intermediary between you and the lender that will loan you the money needed. Brokers are very familiar with the lender options available to them and know which lenders are better than others. They have the purpose of finding you the best deals, then allowing you to choose a lender that you agree fits your needs the best.
Benefits of Using a Mortgage Broker
Brokers have access to far more types of loans and products than a bank does. With access to more options, working with a broker may help you qualify for a lower interest rate than what you have seen advertised. In comparison, going straight to the bank will give you fewer options; A bank only represents the options that their institution offers.
Another benefit of using a mortgage broker is that after your mortgage lender is chosen, they will go through all of your documentation with you before applying for the loan, double-checking that all of your information is correct and that you have everything you need. Having all of the necessary information is crucial when applying for a loan. If the bank declines your application, it is rather difficult to re-apply at the same bank, so getting it right the first time is crucial. To give some perspective, it is common for an applicant that is denied a loan to wait 6-12 months before the bank will even consider a new application.
The connection you build with a mortgage broker will not only benefit you while you are trying to find a lender but in the future as well– there are ongoing benefits. Any time following when you purchase your loan, you can reach out to your broker to review your mortgage.
How do I choose whether to go to the bank or use a broker?
All of the points made above are great tools to help you choose whether you want to use a broker or go straight to the bank.
If you are relatively unknowledgeable when it comes to mortgages, going to a mortgage broker maybe your best option. Using a broker may also help you feel more involved in the mortgage process than just going through a bank, allowing for a higher level of satisfaction with the ending result.
We recommend that you use an online mortgage broker, such as Online Application to help you get the best deal on your mortgage. We take pride in making mortgages and insurance easier, faster, and more efficient for everyone! Head to the home page for some more in-depth information on how we can help you!