Should I Use a Bank or a Mortgage Broker?

April 30, 2021
Daniel Julius

Mortgagers are presented with two compelling options to obtain loans: use a mortgage broker or a bank. But you may be wondering how these two options are different, pricing differences, and most importantly which is best for you. In this post, we will discuss the key differences between a mortgage broker and a bank.

Let’s begin with some background on mortgage brokering. Lenders offer vastly different rates and terms for their loans, which can be confusing for loan recipients to learn. In addition to the fact that many mortgagers do not completely understand the differences between different loan options, it is also time consuming for mortgagers to shop for the best loan. This is where an experienced broker, such as Irish Mortgage Brokers, comes in to play. The experience and connections of a mortgage broker can help consumers save time and find more favorable loans. Because of this, mortgage brokers have now become the primary lenders in many developed countries, quickly outpacing traditional lenders such as banks and credit unions.

Now that we have discussed the basic background on mortgage brokers we can discuss key differences. One of the biggest differences is the time it takes to close a deal. Banks tend to be more bureaucratic and hence will take longer to approve a mortgage. Mortgage brokers, however, can close a loan faster because they specialize in loans. Closing a loan faster can help you win an offer because you will seal the deal sooner.

Mortgage brokers also tend to offer you better terms on your loan. This is because mortgage brokers are very familiar with different lenders and can find you the best lender for your needs. An experienced mortgage broker has amassed a wealth of knowledge on the different types of lenders and can therefore acquire loans from lenders that suit specific mortgagers needs. For example, if a mortgager has a low credit score, an experienced mortgage broker will know where to look to find said customer a loan. Mortgage brokers have extensive expertise in finding customers the best terms.

The possible downsides of using a mortgage broker over a bank is that mortgage brokers are a newer development – that is, banks have historically been the primary conductors of mortgage work. You may be attracted to a bank because of the bank’s competencies and experience in the area. However, mortgage brokers are quickly outpacing banks as the tide turns in favor of mortgage brokers.

You have an important decision ahead of you, but you also have two exceptional options. Mortgage brokers have grown in size among developed countries for good reason. A mortgage broker’s ability to compare different loan prices, along with their competencies in the area, make a mortgage broker a compelling option for anyone looking to take out a mortgage.

We recommend you use an online mortgage broker, such as OnlineApplication.io, for your mortgage needs. We specialize in getting you the best price as quickly as possible. We hope to see you at our website soon!

 

Image credit: https://www.istockphoto.com/photos/mortgage

Leave a comment