There is a prerequisite to become a banker: you must be okay with taking peoples money. It may sound a little jaded, but it’s the unfortunate reality and represents the experience that most people will have when they start shopping for financial products at their local bank. you can try here
Save yourself some time, aggravation, and stress: don’t do it. Your banker may be a friendly, upbeat, ethical individual, but that doesn’t necessarily mean that the corporation they work for (aka, the bank) has to be. A bank, after all, is built around the premise of generating money.
What Separates a Mortgage Broker from a Bank
A mortgage broker is out to make money, just like anyone else. However, there is one crucial element to a mortgage broker that makes a mortgage broker inherently more valuable to a consumer: you don’t pay a mortgage broker. This fact alone almost guarantees that a mortgage broker is going to act in your best interest.
A mortgage broker gets paid by finding customers for various financial products.
When you approach a mortgage broker you are approaching someone with access to dozens (if not more) of mortgage products available to them. This means that they are almost always better suited to finding the financial product that best suits your lifestyle and financial situation.
Since it isn’t you paying the mortgage broker, but the financial institutions and lenders who’s products they are representing, there is a significant element of competition that exists among the products that are available. In essence, it forces the banks, financial institutions, and lenders to develop more competitive products.
This allows people who don’t necessarily have perfect credit or a 25% down payment to find unique mortgage products that may offer them more spending power, less interest, or better repayment terms. And, as an added bonus, the more business that a mortgage broker handles, the more likely they are to maintain solid, trusting relationships with lenders (allowing them to “go to bat” on your behalf from time to time).
If a mortgage broker who does $50,000,000 a year in business with a lender vouches for you, will that lender turn you down?
I don’t think so.
Downsides to Using a Mortgage Professional
Of course, working with a mortgage specialist does have its disadvantages. Specifically, working via a mortgage broker removes the personal element that you may have had with the bank if you walked in and applied for a mortgage product with your banker. If you have a long-standing relationship with your banker you may be missing out on that personal touch.
As well, many banks are able to interlink accounts if you have other accounts and credit with them. Some banks are now advertising an “all in one” account that combines your mortgage, loans, credit cards, checking accounts, and saving accounts into one. While most people may not necessarily see the value in an account of that type, using a mortgage broker may remove your ability to be applicable for special services or products.
Of course, the onus is on your to thoroughly research all of your options and determine which is right for you.
Obtaining a mortgage is not a small thing, so be sure to be diligent and patient. Remember: good things come to those who wait.
One Last Thing to Keep in Mind
Your home is likely going to be one of the single largest purchases (if not the largest) you will ever make. A mortgage is a long-term, binding agreement that will effectively dictate how your finances operate from there on out. It is very important that you take the time to educate yourself on all aspects of your mortgage, it’s terms, and it’s conditions. Be sure to familiarize yourself with the terminology used and any specific riders (special conditions) mentioned in the mortgage agreement.