Are Mortgage Brokers Better than Banks?

Your preference and financial situation determine whether it’s better to work with a mortgage broker or bank. Typically, a mortgage broker has a higher level of convenience. They’re often a good alternative for people that have trouble qualifying for a home loan from a bank. So are mortgage brokers better than banks?

Here are the other reasons why working with the mortgage broker is sometimes better.

Convenience

Starting with your bank, where you use some of their products such as savings accounts and checking, can have benefits like discounts on loans. But still, the loan application process has a lot of back and forth, with the documents and shopping for the right loaning institution. If your bank doesn’t already have a better offer, the process involved in searching for alternatives is time-intensive.

A mortgage broker is similar to a travel agent, as they reduce the hassle of finding the mortgage.

You can choose to do the hard work by inquiring about several banks, their rates and fees. However, a mortgage broker serves as the bridge to banks and does all the legwork based on your needs. They determine the loan that best suits your criteria.

Keep in mind that convenience comes at a price, usually a fee of 1% or 2% of the loan amount.

Customized Help

Mortgage brokers help with the documents and the information gathering needed to apply for the mortgage. They answer your questions and explain certain situations that best suit your current status.

Brokers meet with you, take you through the various options, and help with the decision-making process. They assist in obtaining the right loan product, even when your requirements best suit a less common mortgage product.

Mortgage brokers are better than banks when a higher level of convenience is needed and your financial condition is special. Shop for a broker that already works with your buyer’s agent, and ask about the fees and costs associated with the service.