Thinking about buying your first property, here are a few reasons you should go to a mortgage broker over the bank.
Most people think when you want to buy a house you should go talk to a bank to get a loan. In actuality you are doing yourself a disservice. Think about buying a house, generally you look at several houses, check out neighborhoods to see if it a good fit for you; the same concept applies when it comes to home loans. You should shop loans to see if they work for you and your family’s financial situation as well. Banks do not loan their own money for mortgages they use money from security and bond companies. These companies have their set of qualifications and rules then the bank applies another set of rules which can create barriers for individuals getting loans. Banks only work with select security and bond companies which can limit lending options.
Mortgage brokers also get their money from securities and bond companies, even the same that banks do, however they do not add addition requirements and rules on top of the initial set of qualifications. The mortgage broker shops multiple companies at once and play them against each other resulting in better interest rates and loan terms that work for you.
Mortgage brokers also have your best interest in mind because they only get paid when they close a loan. The banks they make their money from accounts, fees, and products that they provide. Their mortgage lender isn’t working hard to make your loan work for you.