When you’re on the cusp of making the biggest financial decision of your life, it’s nice to know there are some experts you can count on.
Your home is the biggest purchase you will make in your lifetime. You rely on experts to help you find the perfect place for the right price.
Both a mortgage broker and a mortgage banker can play a critical role in your home purchase. So how do you know which route to go, mortgage broker vs bank loan officer? Keep reading to learn about choosing a mortgage broker vs bank for home loan needs.
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Why People Use a Mortgage Broker vs. Bank
Many people don’t even realize they have an option when purchasing their first home. They think it’s as easy as walking up to the desk of a suit-class individual at a bank and signing a few papers.
However, it’s not.
A mortgage broker is a middle man between you and the bank. The broker works to find you the best loan possible. You just sit back and wait for whatever the broker comes up with.
Mortgage brokers must have proper licensing to operate. They have an education in the mortgage field and have all of the necessary tools to help you find a great deal. Furthermore, once you settle on a loan and lender, the broker will work closely with the bank, real estate agent, and closing agent to help the transition go smoothly.
The mortgage broker is the expert finance loan person on your team to help you find your home.
Mortgage Broker vs Bank Pros and Cons
In the mortgage broker vs bank for home loan race, one might wonder, why wouldn’t you use a mortgage broker. Here are the pros and cons.
With a mortgage broker, you have one person who has your best interest in mind. Thus, you receive personalized service and not just a loan officer with his bank’s best interest in mind.
You also have a guide who understands all of the language surrounding the home-buying and mortgage-applying process.
A mortgage broker will also offer a wide range of options. The broker looks at several lenders to help you find the best deal for your financial situation. They understand specialized mortgage programs as well.
You also have one single person who is willing to fight for you. They have your best interest in mind and negotiate accordingly.
Also, because of their close relationship with lenders, mortgage brokers can negotiate to have lenders waive fees you’d have to pay if you were working directly with the bank. You could end up saving thousands of dollars.
Mortgage brokers do have a downside when compared to a banker.
For one, the broker does not have the deep pockets of a lender. They have their few lenders they typically work with. A big bank, however, may even give you the chance to open a brokerage account with them.
Because of your broker’s limited ability to fund your loan, you will have a short-term relationship with them. Ultimately, you’re paying the bank and not the broker. So when you have questions about the mortgage, you’ll have to deal with the bank.
Finally, sometimes mortgage banks will have better deals than what a mortgage broker can find. Lenders may have special deals with lowered fees and interest rates.
When looking at a mortgage broker vs. bank, you need to make the decision that works best for you. Consider your options, and save money.
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