What do you guys think about using mortgage brokers over bank specialists? In my experience, the broker offers a much more attractive deal! They are bank-neutral (in most cases), are paid by the bank (and therefore cost nothing), can provide financial advice from an outside perspective, and have access to multiple banks and are therefore not locked into one. Because of this, I've found brokers have secured better rates than bank specialists could! It's free and could definitely save you money!
I would suggest using a broker, as they can give you better insight into the current market conditions of the neighborhood you're looking at, as well as what other houses are selling for, and whether the home is in a good area. It saves you the time of learning all of it on your own, which can take a while.
If you are using a real estate agent to help you purchase a home, they can and should educate you on the home buying process, albeit they can't tell you to purchase in particular area of not. That will be breaking the law. Buyer agents are mostly paid by the seller so it's worth getting a good realtor to represent you when purchasing a home. As to using a broker versus a direct lender, that depends on the financial situation of a borrower. Yes, brokers have access to a wide range of mortgage loans, but their interest rates might be higher than a regular bank. There are also broker fees and loan origination fees that might come into play. Direct lenders on the other hand can offer attractive rates, but they also have strict lending guidelines so not everyone can qualify. So like I said earlier, it really depends on the borrowers financial situation.
Most of the people who are opting for a home loan hires a mortgage brokers to get some of the best offers in home loan interest rates and other repayment option. Whereas bank specialists are mostly hired by those who are seeking for business loan.
There are actually a number of differences which you may not be aware of. Here�s some information to help you understand. A Mortgage Broker works for you, the client, whereas Bank Specialists are employed by the financial institution. The benefit of using a Mortgage Broker is the fact that they have the ability to offer you mortgage products from a number of financial institutions. Because a Bank Specialists works for the bank, that means that they can usually only offer you their institution�s products. Brokers are typically paid the same amount no matter what rate is offered to the client. Bank specialists� rate of pay is generally reduced in direct relation to the amount they discount your rate from the bank�s posted rate. Depending on your Province, Mortgage Brokers must be licensed and are subject to a strict set of requirements. Accredited Mortgage Professionals (AMP) must take continuing education courses in order to maintain their accreditation. Bank specialists are not licensed and require no formal training.
Both the Banker and the Mortgage Broker can get you a loan. I worked as a Mortgage Consultant, we worked very hard to get the loan approved and settled, because we didn't get paid until the mortgage settled. The Banker is an employee and gets a salary and may not work as hard to get the loan to settlement as the Mortgage Broker, some Banker's may get a bonus for closed loans. It does pay to shop around for your loan and who you use to get it.
The main benefit to using a broker is that you can comparison shop with minimal impact to your credit score. the broker pulls your information, checks to see what you are eligible for and then brings you back all your options to allow you to choose the best deal for you. They also coordinate the entire process from getting you a lender, to getting your appraisal set up, to finding you an isurance agent and getting you closed. The bad part about using a broker is that you have to pay for all these services, a fee is added into your mortgage as part of your closing costs to pay for all the things they do. it depends on how comfortable you are doing all these things yourself or how much money you have to pay someone to do it for you.
