Mortgages: Broker or Bank?
Applying for a new mortgage is a major financial move, and it can impact your budget for years to come. One of the most important first steps to take when applying for a home loan is to decide which mortgage broker or lender to use. There are several key differences between brokers and lenders to consider, and a closer examination of their fees and services can help you to better decide who to work with.
What to Expect from a Broker
A mortgage broker is not affiliated with a specific bank or lender, and he or she is free to work with any lender that offers a beneficial loan program for you. This is an independent consultant who represents your best interests and who can help you to more easily and quickly locate a great mortgage program to apply for. As an experienced and independent professional, your broker can answer all your questions honestly and without bias, and he or she can walk you through the entire mortgage process.
The primary benefits associated with working with a broker are the personalized level of service you will receive, and the fact that the broker is working on your behalf. The downside is that a broker usually will charge an additional fee for services that you will need to pay at closing.
What to Expect from a Lender or Bank
When you work directly with a bank or lender, on the other hand, you will need to spend your valuable time shopping around to find the right mortgage. You also need to know enough about home loans to recognize the best deal when you find it. The bank representative is an employee of the bank, and this means that he or she is working for the lender rather than for you.
The bank, however, typically will not charge you an extra fee as the broker will, and this means that this could be the most affordable option. However, a broker may save you money despite the additional fee if he or she can locate a better loan program for you.
Ready to Learn More?
At Dewar Realty, we can connect you with a reputable in-house broker to work with throughout the mortgage process. If you are interested in buying a home in the local area, now is a great time to reach out to learn more.Greg Dewar on