When it comes to securing a mortgage, you have the choice of working directly with a bank or enlisting the services of a mortgage broker. While both have their merits, there are distinctive benefits of using a mortgage broker. This guide details the advantages of choosing a mortgage broker, like Shelto, over a bank for your mortgage needs.
- Understand the Role of a Mortgage Broker and a Bank
A mortgage broker is a licensed professional who works as an intermediary between borrowers and lenders. They compare mortgage products from different lenders to find the best rates and terms for their clients.
In contrast, a bank is a financial institution that directly lends money to borrowers. Bank loan officers offer mortgage products and terms specific to their bank only.
- Brokers Have Access to a Variety of Lenders
Unlike banks, which offer only their own mortgage products, mortgage brokers have access to a wide array of lenders, including banks, credit unions, and private lenders. This expansive network allows brokers to find a mortgage that best fits your needs and financial situation.
- Competitive Rates
Because mortgage brokers deal with multiple lenders, they can shop around for the most competitive interest rates and terms. Banks, on the other hand, can only offer their established rates, which may not be the most competitive in the market.
- Tailored Service
Mortgage brokers offer personalized service tailored to your specific needs. They work on your behalf, guiding you through the mortgage process from start to finish. Banks typically serve a high volume of clients, making it challenging to provide the same level of personal service.
- Saves Time and Effort
Using a mortgage broker can save you the time and effort of shopping around for a mortgage. Instead of contacting multiple banks and lenders, a broker does the legwork for you. They compare different mortgage products and present you with the best options.
- Expert Advice
Mortgage brokers have extensive knowledge of the mortgage market. They can provide expert advice on different mortgage options, interest rates, and terms. They can also explain the mortgage process and answer any questions you might have, ensuring you make informed decisions.
- Assistance for Difficult Applications
If you have a low credit score, are self-employed, or have other circumstances that make your mortgage application more complex, a mortgage broker can be invaluable. They can connect you with lenders who specialize in handling non-standard applications and guide you through the process.
- Potentially Lower Fees
Mortgage brokers may have access to special rates and deals due to their relationships with various lenders. This could include waived application, appraisal, or inspection fees, which can significantly lower the overall cost of your mortgage.
- Ongoing Support
A mortgage broker’s service extends beyond securing your mortgage. They provide ongoing support throughout your mortgage term, helping you navigate changes in interest rates, refinancing needs, or early repayment.
Choosing between a mortgage broker and a bank depends on your individual needs and circumstances. However, the personalized service, broad lender access, competitive rates, and expert advice make mortgage brokers a valuable ally in your home buying journey. With Shelto, you can expect transparent and professional service designed to secure the most beneficial mortgage for your needs.