If you’ve had a good relationship with your bank, then it’s only natural that you will turn to them for assistance- even with your mortgage. However, your bank might not always be your solemn savior. What will you do if your bank turns away your mortgage application? Of course, you need to find new lenders. If you haven’t used a broker before, you may be unaware of the benefits.
Mortgage Brokers for Competitive Rates
One of the benefits of choosing a broker over a bank is your access to competitive rates. When you go directly to your bank, you restrict yourself to the bank’s non-negotiable rates. It might be higher than the prices you’ve seen in their advertisements. Even after negotiations, you might not make progress.
A mortgage broker can shop around for the best rates, no matter your financial situation. Even if you have racked up debt, have a bad credit score, or lost your job, a broker will work around your circumstances. When you walk in a broker’s office after leaving the bank, you might expect the same rates. Imagine the surprise when the broker quotes a lower rate without haggling.
The Mortgage Broker Difference
The difference between the broker and the bank is simple. On the one hand, is a loan officer who works under the bank. Their goal is to get you to pay as much as possible. Bank employees also work on a commission basis, which means they will drive the rate as high as possible.
A mortgage broker, on the other hand, is not an employee of the bank or any financial institution. Since brokers have no affiliation with lenders, they will represent you. As such, the broker’s incentive is to serve you well so that you’ll come back for more services.
Getting the Best Rates
With a broker, you will receive the best rates from different lenders and choose a mortgage that works well with your financial situation. A broker will approach banks, trust companies, and credit companies to make sure you have a variety. Rather than dealing with a single lender, you can compare rates from different institutions.
What Is The Cost Of Hiring a Mortgage Broker?
Perhaps you are wondering if you can afford a broker. Maybe you’ve heard that they are expensive. You should know that banks or lenders pay brokers after you agree to work with them. A broker finds the best rates, and once you decide to place your mortgage with a lender, they pay the broker a finder’s fee. As the consumer, this means that you enjoy competitive rates without bearing the costs.
What Are The Advantages of Hiring a Mortgage Broker?
Access to multiple lenders and offers is one of the most significant advantages of hiring a broker. Interestingly, many financial institutions have a variety of products on the market. However, when you approach them without the knowledge, they will present an unconditional offer in the guise of a good deal.
Your broker knows all the offers on the table and understands their qualifications. Once the broker understands your financial circumstances, they can approach the bank confidently to ask for an offer. Applying for a mortgage through a broker will also save you a lot of time and energy. If you have problems with your credit rating and employment status, approaching the bank directly will only get you denied.
Were You Turned Away? We can Help
If your bank denied your mortgage application, I can help you. Contact me anytime to get your questions answered now.