Once you decide that you have had enough of renting, it is time to acquire your property. Oh, what joy that comes with owning a home! Now it becomes part of your assets.
However, most people face the problem of getting enough funds to pay for the purchase of the property. So you turn to the option of getting a loan, which can be tiresome for some.
So, who do you turn to? Is it the bank or the mortgage broker?
I know the decision process can be quite expensive and time-consuming, but all of the options come with various benefits and limits.
What is the difference between the two?
1. They Differ by Definition
A mortgage broker works with different banks or lending institutions. Therefore, it would be right to call him an intermediary.
The bank, on the other hand, is just another financial institution. They offer various loan options other than the home loan.
2. Mode of Payments
The thing about the bank is that once you get the loan, you will have to pay the mortgage with interest. You do not need to worry about paying the loan officer. He or she will receive his or her payment at the end of the month, and that is the bank’s burden.
On the other hand, since the mortgage broker is doing all the shopping on your behalf, he or she will ask for a commission.
Therefore, once the bank issues the loan, he or she will receive a small percentage from the loan amount.
3. A Mortgage Broker Comes with Options
Think about it. When you hire a mortgage broker such as https://altrua.ca/, you should be at the shopping stage. At this point, you are still looking for the best option available. A responsible one will present you with lending institutions that favor your pocket.
When you choose a banker, it means that you are minutes away from making a good or a bad deal. In other words, the loan officer will not present you with options from other institutions.
4. Brokers Work for You
In other words, he or she will prioritize your needs. The broker is working on your behalf. Most of them work with the realtor and the bank on your behalf, which means that the firm will act as consultants.
On the hand, a loan officer do not work for you. Their primary purpose is to bring business to his employer. He or she will get straight to the point and examine whether you qualify or not.
To Sum it Up:
Always be selective when choosing the mortgage broker. He or she can make or break a good deal. For instance, if you pick someone who only recommends you to a specific bank that offers high and burdening interest rates, you should continue with your search.
Ensure that you ask for recommendations from colleagues, friends, and family. You should also pick someone that is close to your area since they understand the market better than you.
Remember: a reputable mortgage broker will offer a shortcut to your loan problems rather than make them bigger and more difficult to handle.