When buying a property you may be confused regarding whether to go to a bank or a mortgage broker. This is not a rare phenomenon and more often than not this dilemma reigns supreme whenever one has to borrow a considerable amount. Just like you, a lot of people are constantly weighing their options to legitimately choose between the two. It might help to know how they are different and what are the advantages and disadvantages accruing to them.
Before we tell you how and why it may be better for you to go to a mortgage broker than a bank loan officer, it might help to consider the difference between the two choices.
The options that the bank loan officer will give you will strictly emanate from the financial institution they work for, be it a credit union or bank. And even when they offer a range of different types of loans, you will still be restricted to that financial institution and their terms and conditions. On the other hand, mortgage brokers also work with multiple money lenders who are not operating in terms of irreversible rules. The money lenders are more like freelancing agents with whom you can individually negotiate and if you have a unique situation to be considered, then the relative flexibility of this option can be of help. The mortgage broker will analyse different loan options for different requirements and based on the best option available in the market, they make the borrowers and lenders meet.
Now, let’s consider the reasons why a mortgage broker will be a better consultant than a bank loan officer.
This is one of the most important reasons why the mortgage broker should be a clear choice when considering loan options. Unlike the bank loan officer who is restricted to the choices offered by his financial institution, with the broker you will be able to avail the services of a range of different kinds of lenders, starting from banks to money lenders.
Experience and Long-term Accessibility
Because the banks keep shifting their employees from one department to the other, the chances are that an individual loan officer does not get to master one area with sufficient experience and time spent in one department. The bank is dealing with multiple facilities and the bank loan officer might not be dealing only with mortgage loans. But as the mortgage brokers have enough experience by helping their clients over the long haul, they are the ones you are looking for in case you want long term accessibility.
The banks do not train their loan officers to specialize in one area and they are taught to deal with a host of different loan requirements. But as mortgage brokers are strictly focused on their area they are the ones to consult for the pearls of wisdom resulting from years of experience.
While for the bank loan officers you are a means to climb up the ladder of corporate success, mortgage brokers are more like the business owners who are there for the long haul. So instead of treating you like an addition in the number of clients in his list like the bank loan officer, the mortgage broker will take care of your specific and unique requirements, pruning every product to suit you.
We are all aware of the hindrance that red-tapism causes in any official work but an efficient mortgage broker will ensure that your files are moving at a good pace and that you do not go wrong on the technicalities of filling out a document. They will also keep you informed and updated about latest developments.