Broker vs Bank mortgage: which is best?
If you’re shopping around for a new mortgage or refinancing an existing mortgage loan, which avenue is the best option for you? While skyrocketing property values makes homeownership’s goal seem impossible for a growing number of citizens, buying a home is one of life’s remarkable milestones. When you’re ready to make this dream a reality, shopping for a home loan is a vital step in the process. Who should you finance your new loan with, a mortgage broker or the bank? At the Cain Mortgage Team we help educate our clients to making smart decisions, read more below.
One might benefit your family more than the other, depending on your financial circumstances. One with a higher credit score might offer a different alternative than applicants with lower credit scores. On average, consumers consult approximately four mortgage professionals during the process.
The differences between brokers vs bankers
The main difference between a bank mortgage officer and other alternatives is that he/she only represents the products within its institution. A mortgage broker or mortgage lender works as an intermediary who works with multiple lenders and provides the best option to fit your needs.
While some homeowners often use traditional banks, the use of a broker or mortgage lender is continuously trending upwards. With rising bank fees and dwindling customer service, applicants are more interested in getting the best rates, more personalized service and valuable advice which is leading a charge towards mortgage lenders and brokers. These licensed professionals act as a sales force for wholesale lenders and typically provide lower rates. With dozens of potential lenders at their disposal, they have a comprehensive array of options.
Comparing brokers and bankers
Unlike a bank that wants to promote its products, mortgage brokers and lenders only handle mortgages. They take advantage of the lowest options according to your credit history and housing needs. If your application presents itself with challenges, their spectrum of financial contacts and specialized programs can help you overcome lower credit scores.
There’s no fee to use a mortgage lender, instead, the individual receives a commission from the lender who provides you your mortgage. A broker’s commission is similar but can vary depending on which lender is selected to sell your loan.
Mortgage broker vs bank pros and cons
Banks are anxious to secure profitable relationships and they can entice you with the perks of paying home appraisal fees or other incentives. Additionally, banks can offer other services such as checking accounts, credit cards, car loans and HELOCS and having all your financial services in one area can be of great benefit.
Conversely, if you’ve obtained a home mortgage in the past, consumer-direct mortgage lenders might be the best route. Mortgage lenders and brokers specialize in mortgages and typically provide better service due to more experience and familiarity with the process. Despite each option’s pros and cons, it comes down to the prospect to choose the route that best suits their needs and desires.
While your primary banking institution may be an obvious choice, personalized service or tricky financial situations may push your decision towards a mortgage broker or mortgage lender. Purchasing a house is a substantial purchase, so shop around diligently and be sure to procure a mortgage with a professional you trust.
Advantages of working with the Cain Mortgage Team mortgage lenders
Take advantage of what the Cain Mortgage Team can offer. We are able to shop for the best mortgage rate and have in-house operations, which makes the process significantly smoother. Additionally, we are locally owned and operated and have lower fees than most other options. As you can see from what our previous clients have stated online, the experience is second to none!Contact us today to get started with the right mortgage at the best rate!
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