Mortgage Broker vs Bank is a very common question, see below for a few differences.
A Mortgage Broker will quickly determine if you qualify for financing, and your options from a high-level. After an initial discussion, you will proceed to complete an application and deliver supporting documents. However, when you are representing yourself, your job is not so simple. You may need to commute from bank to bank and work around the hours of the bank. Furthermore, you may not be aware of the documents and information needed for your appointment. When working with a Mortgage Broker, the support and guidance may very well lead to a more time efficient process. Mortgage Brokers are skilful with presenting loan requests and negotiating for better rates and mortgage features.
When you go and apply for a mortgage with a bank, you will be dealing with an employee that reports to a manager. You are in the hands of a one-tricky pony. This means that the advice and options presented to you, are being offered by a related party. However, A Mortgage Broker will help you access multiple lenders which usually means that you will have a much wider option of products and rates. Why limit yourself?
When you apply with a Mortgage Broker, your Broker will pull a preliminary credit report to evaluate your credit and determine your options. This credit report can be transmitted to multiple lenders via an online secured portal. Now, if you chose to represent yourself on your mortgage hunt, be prepared, that each lender you apply with, will be pulling a credit report. Unlike a single credit inquiry with your Broker, multiple bank inquiries impact your credit score, which isn’t particularly attractive to the lenders you are seeking credit from. Keep it simple.
Flexible Mortgage Approvals.
Banks operate under very stringent underwriting guidelines with little to no room for exceptions. Mortgage Brokers have options for clients who cannot fit in the bank box, or who require creative financing solutions that the banks are unable to provide. A Mortgage Brokers will help those self-employed, have bad credit, or who have higher debt service ratios. In addition, they’ll help you receive approvals based on sufficient equity and very fast funding.
5. Concierge Service.
The right Mortgage Broker will constantly have you feeling that you are not just a file number. A Broker is usually easy to contact and in most cases, available round the clock 7 days a week. You just won’t find this level of service or commitment from your local bank branch. Brokers will interact with you over the phone, video conference, email, and some Brokers are happy to drive closer to your home for convenience. Assistance with ordering the appraisal, gathering supporting documentation, and a liaison throughout the entire process is an incredible value add to you.
In summary, your Mortgage Broker is motivated to establish and maintain a long-lasting and meaningful relationship with you. In addition, the right Mortgage Brokers is not under a sales quota and will prioritize your interests and needs.
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