In the past, banks were the only mortgage solutions providers. Therefore homebuyers exclusively turned towards banks. However, these days mark the rapidly growing presence of mortgage brokers. Independently functioning mortgage brokers are licensed professionals who enjoy access to a number of lenders and mortgage rates. Therefore, they can give an unbiased solution understanding your specific situation, budget, and requirements.
In addition, mortgage broker deals with large quantities of mortgage products. They can pass on the benefits of volume discounts to benefit you. If you want to understand the differences between operating directly with a bank and through a mortgage broker, read on.
Mortgage Brokers are Rising – Banks are Not Worried
In the present scenario, the banks hold 60% of the market share while mortgage brokers have 40% of it. This will let you know the growing popularity of mortgage brokers. Banks can be understood as chartered banking institution offering a range of services including personal banking, credit card, loan and mortgage services. On the other hand, licensed mortgage specialists have access to a number of money lenders and mortgage rates. They act as intermediary and receive their commission from the lender who offers the mortgage product.
Banks are Direct and Mortgage Brokers Not
While banks lend directly, mortgage brokers do not. They only mediate in the process of linking home buyers and money lenders. You are wholly responsible for any negotiation you make with the bank. Banks offer you only the products and rates they have. Mortgage brokers on the other hand can shop around and negotiate for the best mortgage products for you.
Worthy Differences between Mortgage Brokers and Professional Banks
There are also several other important points of difference between a bank and a mortgage broker. Mortgage brokers have knowledge of the entire mortgage market. They can give you a sound advice on which money lenders will consider your specific case and whose products will suit your situation and requirements. This will be highly useful for people with poor credit ratings.
Since mortgage brokers have access to several money lenders who offer mortgage products to people with adverse credit, they can leverage relationships with banks and money lenders. Mortgage brokers can also educate you regarding the exclusive deals and products that are not available in the open market. They can negotiate a better interest rate or lower application fee from the lender in some cases.
Mortgage brokers can render a comprehensive assistance with the application process, from the stage of pre-approval to home appraisal. At the same time, you need to know this too. A mortgage broker offers an origination service. They cannot give you the mortgage product directly since they are not a financial institution or bank. The money lender will collect payments and offer customer service even after closing. However, you can always enquire whether your mortgage broker can help you throughout the life of your mortgage.
Ready to Side with Our Mortgage Broker Professionals
Mortgage broker vs. bank is a highly useful topic you need to know as a consumer looking for some mortgage product. Learning the information regarding mortgage broker vs. bank can help you plan how you will go about with your home purchase. Weigh the advantages and disadvantages of working directly with the banks and through mortgage brokers and decide on the strategy that will do more good to you.
Call 1-866-963-CMGC (2642) to get in contact with expert mortgage brokers.