The world has changed and the way we look for mortgages has changed too. There was a time when you went to the bank your parents dealt with and that was it. You opened your accounts, took out car loans, invested with them and eventually received your mortgage from them. Now you have choices and you do not have to rely on one lender to help or secure mortgage financing for you.
You shop for every other purchase you make. Whether its a new car, stereo or fridge you compare the prices, service and options (to name a few) that each of these purchases offer. YOU need to be doing the same when looking for a mortgage.
Lets agree that you expect the best service and product to fit your needs and if you are not getting these then you would go else where anyway.
Lets take a look at the differences and why it pays to use a broker over just going to a bank.
1. Bank offers its products only — no choice – a broker has access to over 30 different lenders and over 200 different product offerings. Look at it this way. If you where purchasing a vehicle and you where told you could only buy product X and the only colour is red how happy would you be?
2. The bank will pull a credit bureau as will a mortgage broker. If the bank declines the deal you then have to go to another bank and they will have to pull another credit bureau. This will effect your credit score and in turn reduce your chances of getting approved. A broker will pull one credit bureau and if one lender declines then they can move onto another lender without pulling a new bureau and therefore not effecting your credit score.
3. A broker can work around YOUR schedule where as you are dictated by the hours the bank is open. Most brokers carry cell phones, blackberry’s etc and are readily available to meet, this even means coming to YOU if required.
4. If you want a bank product a broker has access to a variety of the major banks products.
5. With the bank you will probably be dealing with an employee who also does loans, account openings or investments. A broker only does mortgages and therefore is an expert in what is available when it comes to getting a mortgage.
6. If you have had issues and the bank has declined the deal they normally will not provide a solution or plan of attack. A good broker has access to other lenders who help clients who have credit issues, self employed or previous bankrupt. We will work with you to get you back on track and come up with a plan to get you back to the great rates that are available.
7. The banks will maintain contact with you and be there for assistance once your deal closes. A good broker will also provide this service but to the next level. A broker is paid by getting you the best possible deal and providing the best possible service available. We live on referrals and we need to ensure all our clients are satisfied to ensure those clients refer us to others.
8. Good brokers have special offerings such as cash back for closing costs or even beating a rate another lender is offering.
I could keep going as the reasons are numerous. I will state that you need to interview the broker and even the bank to find out what they are all about. A good broker will develop a strong relationship with their clients and remember who they are and always be looking out for their best interests in regards to their mortgage products.
So make the right choice and call a broker and do not be caught up in the 1 choice market. It’s your money and you need to be getting the best deal, service and products available to you. So call me and together we will help you realize the dream of home ownership or getting out of debt sooner.