Which option would be your choice?
What is a mortgage broker?
A mortgage broker will assess your creditworthiness and financial situation. A mortgage broker will then give you an objective assessment of your chances of getting approved for a mortgage. This usually includes your income and ability to repay mortgage payments.
A mortgage broker can help you find the right loan to suit your needs. Most brokers have access to databases of info on available lenders, enabling them to match their clients’ needs to the best lenders quickly and efficiently.
A mortgage broker is also available to offer invaluable advice during the application process. This will allow you to make the best decision.
Use a mortgage broker to get the benefits
Mortgage brokers are familiar with policies from up to 30 lenders. By going to a reputable mortgage broker, clients won’t have to go to multiple banks to source the best home loan products.
Additionally, mortgage brokers aren’t aligned exclusively with one bank. They work more like agents for their clients, and don’t represent the interests of the banks.
The disadvantages of a mortgage broker
There are advantages and disadvantages to working with a mortgage broker. Due to the sheer number of brokers in the marketplace, it can be difficult to pinpoint the brokers who’re highly experienced and can provide top-notch services.
A great way to overcome this deficiency is to ask family, friends, and colleagues to recommend good mortgage brokers they’ve previously worked with.
“It is also important to do a bit of basic research, like see how long the business has been established, do they have a shopfront or office, etc.,” said Cliff Ferrer, a broker at 1st Street Home Loan Specialists. “Clients should get some confidence that they are dealing with a broker who is established and won’t be here today and gone tomorrow.”
What does a bank officer do?
In that they operate in the same manner, bank loan officers and mortgage brokers are often very similar. Bank loan officers work for only one lender or bank. This is the main difference. They’re considered employees of the bank or lender they work for, and often receive volume incentives when providing clients with loans.
If you possess great credit, are already a customer of that bank, and have a stable income, you’re more likely to get a good rate with that bank. An experienced loan officer can help find the best product for you.
A bank officer can be a great help with your loan application.
Bank loan officers are able to help borrowers with poor credit, as we have already mentioned. Banks favor clients with low risk lending histories because they stand the best chance to make money. Requesting a loan officer review your application may allow you to access the best bank deals.
There are some drawbacks to using a bank officer for your loan.
A bank is the only way to source your loan. The bank loan officer cannot access loans not offered by the bank. This can seriously restrict the options available to prospective borrowers who aren’t already direct customers of that bank or lender.
Conclusion: Review your credit situation and preferences
Although there are obvious advantages and disadvantages to working with a mortgage broker (or bank officer), it is important to consider your credit history and preferences carefully before you make a decision. This way, you’ll end up with the best result possible for your situation.