Shopping for a home loan? You’ll have a different experience depending on where you go – a bank or a mortgage broker. Is either one better than the other? Not necessarily, but there are pros and cons to each and it’s important for consumers to understand the differences before proceeding.
Banks
Loan officers at a bank or credit union can offer access to a wide variety of loans, all originating from the same financial institution. Working with local banks can mean faster loan processing because there are fewer questions about the specifics of local property, the local real estate market, and local standard operating procedures.
Mortgage broker
A mortgage broker scouts out the best deals for clients, whether local or long-distance. They work on a fee per transaction and may be able to offer more options. Because they act as the liaison between the home buyer and the lender, mortgage brokers may be able to secure better loan terms or interest rates. They may also be able to help those purchasing unique or commercial property, or those with poor credit whose loans may not have been approved by other lenders. Mortgage brokers may be able to provide a more specialized loan that best suits your need.
Always choose the mortgage loan that offers the best interest rate, terms and conditions. Although they are working for an additional upfront fee that you must pay, brokers can prove well worthwhile in the long run for the money they might save you in lower interest fees.
2 comments:
This is because banks have imposed strict assessment guideline for refinancing, using only 10-year loan tenure, and as a result, many would have been disqualified.
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