A Bank or a Mortgage Broker: Which Credit Adviser is Best?
When it’s time to secure a home loan, traditionally most people go straight to their bank, without realising that there are other options. According to many financial experts this could well be a huge financial mistake, because there are many other benefits you could be missing out on.
Why Would I Choose a Broker?
There are many, many reasons why you should approach a broker first when initially applying for your home loan. You may even end up with a loan from your own bank, so you can use the mortgage broker to process the application and paperwork on your behalf.
If you don’t have a specific lender in mind, then a broker will be your saviour as you navigate your way around this very important decision. Below is a brief outline of how an experienced mortgage broker can help when you need credit advice or you’re in the market for property finance.
The most important reason for using a mortgage broker over a bank is choice. When you’re at your bank applying for a home loan, you have only their products to choose from: when you’re with your mortgage broker you have a choice of ten-plus banks and more than fifty other products.
This is particularly relevant today when banks are being more cautious – you’re more likely these days to get a ‘no’ from your bank, whereas with the broker there are so many options you are more-than-likely going to get a ‘yes’.
Brokers usually own their own business and in many cases have been doing so for many years: this means a wealth of experience and knowledge, all available to you. In contrast, your lending officer at your bank may not have been in their position very long at all, because bank staff are moved around regularly and rewarded with better positions for service rendered.
You Need Specialised Assistance
This is such an important decision you’re about to make, so you really want to be assured you’re speaking to someone who has a wealth of experience and really knows their industry. You really do need a specialised broker who can answer all your questions and has all the information you need at their finger-tips.
If you’re just a beginner at property investing, then find a broker who specialises in helping property investors. Unfortunately a lot of bank staff have not been trained in this area, and don’t have the qualifications or experience to service your needs. Yes, their job is to help you when you go into your bank, but this doesn’t mean you’re getting the very best advice.
It’s All About Service
It can be quite time consuming, not to mention frustrating, following up on your loan application. Fortunately, you won’t have to do any of this, because your mortgage broker of choice will have a system in place for following the progress of your loan, and will keep you informed. This will save you a lot of time, and you’ll feel very reassured receiving regular updates and personalised service from your broker/credit adviser.
Now You Have Your Own Personal Banker / Credit Adviser
In reality, your mortgage broker is like the old-fashioned banker of long ago, where they know you personally and understand your banking needs. Because this is their own business, they’re there to help you in any way they can: they’re experienced professionals, they know what needs to be done, and they ensure it happens with little effort on your part.
Have you noticed that your bank staff is always changing? Ultimately that’s what happens in big corporations – people get promoted and moved around, and unfortunately this results in very little on-going personal service. One day you discover a great bank officer, and the next day they’ve moved on to another section, or another bank altogether. It’s frustrating, and not helpful to the person who really does require some personal attention and good service when making one of the most important decisions of their lives.
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