When a person wants to procure a mortgage, there are different channels they can opt for. However, in this article, what will be evaluated is the banks as compared to what most would call My Local Broker. Even though brokers are either online brokers or local brokers.
The mortgage brokers are like middle men who liaise between the banks or the lenders as well as the brokers and try and get the best deal for the homeowners. Infact there are atleast ten percent of home loans which have resulted due to the services of mortgage brokers.
When people need mortgages they normally go to banks but there are chances that the banks reject them either because they do not qualify for the loan or they may get rejected due to tricky details that are mentioned. So, they need to go to mortgage brokers who can help.
Mortgage brokers are helpful in the following ways:
- Due to large volumes they deal in, they are able to get loans at cheaper interest rates for the home owner than what he or she would be able to.
- The broker is able to verify and either provide or retain information of the homeowner to the bank.
The bank if contacted directly by the homeowner will probably only offer very conservative loans and will not disclose what the premium spread is like. The bank is also takes a long time and is very bureaucratic when it comes to disbursing loans. They tend to make false promises too.
If one goes with the local broker then there are chances incase the bank makes mistakes, they are able to point them out immediately, they will ensure that the home owner does not get overcharged and incase the bank personnel are not aware, they can help with educating them.
Mortgage Brokers also do the running about instead of the home owner and they compare rates and prices as well as even tricky deals can get financed as they are aware of the loop holes and intricacies. They also are very flexible and adjust as per the home owner’s schedule.