Picture this. You have finally found the home of your dreams and with your current financial state, you know that you are absolutely ready to go out and purchase that house you have set your eyes on. Now you have probably just one question that stands out from all of your others: “how do I go about securing the financing for my home?”
Securing financing is dependent on a lender. For instance, commercial banks offer many forms of loan products and they’ll be happy to help you with and there are other financial institutions out there that can fit your needs.
Broker or No Broker: That Is The Question
A broker is basically a middleman between the borrower and the financial institution that will be supplying the borrower with the loan. A broker gets all the paperwork together and assumes the role of facilitating the deal at hand. They deal with all the paperwork to and from and basically, in the best sense, make a borrower’s life easier. In return, they are paid a fee, a commission, for all the services that they provide.
You can always go directly to a bank for all the financing requirements you need and banks are usually staffed with loan officers that can help you figure out a product that is suited to your standards. The only problem is this, if you are shopping for the best rates available, you will have to visit every bank in town, have papers processed before you can get a bird’s eye view on the things that you need.
However, the good thing about a direct to the source approach is that the fees can be considerably lower than going to a broker. But, they could also be higher if you go to the wrong financial institutions for your loan needs.
What Is The Right Thing For Me Then?
There are a myriad of benefits for doing either, but there are also particular disadvantages to both. Going with a broker is typically the “best” way to easily shop for the best rates in the market. They will be able to assess your requirements and match your needs with particular lenders.
A broker will also be able to handle all the cumbersome paperwork that comes with surfing for the best rates. They file everything for you and ensure that everything you need is in order. It is definitely easier to get a broker to handle everything.
According to, Crown money management mortgage brokers, brokers will usually have longstanding relationships with lenders that can help secure better deals and on most occasions, discounts on some fees that may arise. This could mean a great deal in reducing the costs of borrowing.
If you have a longstanding relationship with your bank and leaning towards getting a loan directly from the bank this could be good news for you. A bank has control over the loan and if you play your cards right, you could have a better rate than most. A small saving here and a point there and you could be looking at massive annual savings for the duration of your home’s mortgage.
It’s Really Up To You
At the end of the day, it will to your absolute benefit to compare things between a broker and your preferred bank, but when it comes down to it, the more options you have the better. You do want to save money when going out for a mortgage, but you also want the best way to do it. Shop around and keep your options open, it’s the only way to do it best!