The Pros and Cons: Mortgage Broker Vs Bank
When it comes to the whole mortgage broker vs bank scenario, there are some that would swear by the benefits that brokering agencies offer when it comes to finding the right loans and agreements to fair repayment terms. On the other hand, there are those that believe that approaching a bank directly can offer its own rewards; such as getting to talk to a loans officer one on one.
The reality is that extensive studies have taken place whereby these two options have been compared by financial specialists, and the results might actually come as quite a surprise.
Which option is preferred?
In an astounding 8 out of 10 cases, opting for a mortgage broker yielded a much greater reward when it came to saving money and finding a suitable home loan.
Much of these rewards were based on the complex features provided by brokers, whereby they are able to compare interest rates, get to grips with the most up to date terms and negotiate with lenders on behalf of their clients.
When going it alone and approaching a bank directly, many solo applicants will need to take care of the interest rate comparisons themselves – and with different lenders proposing a range of rates, this is often easier said than done.
With a brokering agent (and one that has access to a database possessing this type of information), the entire endeavour can be undertaken with more rapidity, allowing a potential borrower to move ahead with their application without delay.
Furthermore, once a decent deal has been discovered, a broker should be able to work closely with a bank to negotiate fairer terms if necessary, on behalf of the borrower. These features are things that applicants simply won’t get by approaching a bank directly; in fact with many lenders proposing exclusive deals to brokering agencies, it can be possible to secure a very beneficial home loan, without having to take care of the running around associated with a mortgage application.
There are benefits to applying directly to a bank however, and they include reducing the fees associated with hiring a mortgage broker, or being able to talk to a loans officer directly when putting an application forward. These benefits pale in comparison however, especially when hiring an effective brokering service that could put the needs of the borrower first.