Rather than heading straight to your bank or financial institution when you go in search of the right home loan, visit a mortgage broker. Why? Well, not only can you possibly save yourself thousands of dollars with lower interest rates, but you are also able to develop a long-lasting professional relationship with your mortgage broker. This means that if you encounter any difficulties or need to ask for professional advice that your broker can assist you. Let’s look at how mortgage broker and a bank home loan services compare.
A Mortgage Broker and Bank Home Loan Services
A mortgage broker and bank differ greatly when it comes to taking out a home loan. The most common differences that you’ll encounter are as follows:
Home Loan Products and Lenders – Brokers have a number of lenders, usually 10 or more, on their lending panel that you can select from. Plus, mortgage brokers can usually offer you more than 50 different types of home loan products. Whereas, a bank or financial institution can only show you their products, which may be a handful of home loans.
Level of Experience – Mortgage brokers typically run their own home loan business, so they are helping clients long-term with mortgage products. Banks and financial institutions tend to move their staff from one area to another, especially those who perform well. This means that you rarely get to deal with the same person or a familiar face, and that bank home loan representatives are usually someone who deals in a variety of banking services, rather than just home loans.
Specialist Service – Brokers often specialise in an area of home loans. For instance, first home buyers, property investment or retirement portfolio building. This can mean that brokers have greater training in these areas and are more proficient at offering you up-to-date advice. Banks and financial institutions, on the other hand, tend to offer a home loan service in general. Therefore, they may not be able to offer you any specialised service.
Comprehensive Assistance – A mortgage broker deals with you and your home loan from start to finish. They’ll help you with your home loan application, up-date you on its progress, and follow-up with you at regular intervals to ensure you’re happy with your home loan and that it’s working well for you. Banks and other financial institutions will assist you with your application, but the service is limited. In most cases, you’ll have to review your home loan yourself and you’ll have to follow-up on your own home loan.
Personal Home Loan Officer – A mortgage broker is a little like having your own personal home loan officer. They deal with you personally one-on-one. They’ll answer your questions and offer you home loan comparisons, so that you can find the most affordable home loan for you. However, when you deal with a bank or financial institution, you may find that you get a different person each time you visit. This can be frustrating and make you feel like you’re just another number in a queue, especially if you don’t feel comfortable talking to someone you don’t know about your financial situation.
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