What is a broker and what are the advantages of using one over a bank’s loan officer? Brokers have a lot more freedom and are honestly shopping around to get you the best deal. Generally speaking, a broker has no loyalty to any particular lender, and will match you up with the lender making you the best offer.
The banks on the other hand, can only provide you with what they themselves have to offer. This is very limiting and can give you a negative glimpse of your mortgage options, especially if you aren’t aware that you can shop around. Going to a broker is a one-stop shop that saves you the time of personally contacting, and attending appointments with all the various lenders.
At the end of the day you want to go with the lender that is offering you the best interest rates. Although you may prefer to think of your mortgage in terms of monthly payments, it’s important that you look at the big picture and are aware of just how much extra you are paying for your mortgage, via the interest.
There is a chance that you could get lucky and your bank is offering a great rate at the time you are applying for a mortgage, however, many factors will influence the rate you are offered. Your credit score, debt load, income and expenses, are all reviewed to determine how big of a risk you are. The bigger the risk factor, the higher the interest rates. These factors will also affect the figure presented to you for your mortgage loan – the actual maximum amount the bank is willing to lend you.
There is a lot of knowledge and insight to be gained from meeting with a mortgage broker, don’t discount how good of a deal you may find using one.