Why you should hire a local independent mortgage broker

Why you should hire a local independent mortgage broker

Why you should hire a local independent mortgage broker

Mortgage Options

Securing a mortgage on a home may often seem like a daunting task because there are so many different ways to secure a mortgage. Most homeowners who want to get the best deal that they can and this is where it can become quite confusing. The two principal ways of getting a mortgage for your home are by using a bank or a mortgage broker. Obviously, there are pros and cons for every situation and the homeowner will have to make a decision on which type of mortgage institution will provide them with what they need.

This article will compare some important information about obtaining a mortgage by using either a bank or a mortgage broker. A broker is somewhat like a middleman. They work for the homeowner and will try to obtain a mortgage from either a bank or a mortgage lender. A bank on the other hand is a financial institution that will work directly with the homeowner. The bank basically finances a mortgage on a retail level whereas the mortgage broker finances a mortgage on a wholesale level.

As mentioned previously, there are pros and cons to both a bank’s retail mortgage and a mortgage broker’s wholesale mortgage. The majority of people will choose a bank because they feel comfortable using their primary banking institution. Anyone who has trouble qualifying for mortgage however may find that a bank is very difficult to deal with. The best option for these type of people is to use a mortgage advisor.

When it comes to competitiveness, a broker – advisor can be as competitive as a bank. In fact, you will find that wholesale interest rates from a mortgage broker are quite a bit lower than the retail interest rates that most banks offer. It is interesting to note that most banks have a retail and a wholesale mortgage division. The retail mortgage division has higher rates than the wholesale mortgage division but you will only be able to obtain a wholesale mortgage rate via a mortgage broker.

A homeowner who is securing a new mortgage or refinancing an existing mortgage may turn to their bank in the beginning because of their previous relationship with the bank. The bank knows every detail about their client whereas a mortgage broker will have to verify important financial information. This verification of important financial information will have to be approved by the homeowner.

The disadvantages of working with a bank is that they normally have very conservative loan programs. The lending process is very bureaucratic and lengthy. They have a tendency to make false promises and they often overcharge you. Many of the loan officers in a bank are poorly educated in regards to the home loan process and therefore mistakes can be made.

A mortgage broker is a better choice because they will work on your behalf and do all of the legwork. They will be able to provide wholesale mortgage rates from a large selection of lenders and banks. The wholesale interest rates that they receive will be lower than the retail bank’s interest rates. You will get more options and a mortgage broker can also finance a mortgage even if you have financial question marks. Finally, they are less bureaucratic and easier to deal with. So if you are looking for an independent mortgage broker in Ashford Kent, then you should consider giving us a call. We will discuss with you all your requirements etc and match the right deal to your needs.

The post Why you should hire a local independent mortgage broker appeared first on Prospect Tree Mortgage.

January 11, 2017 at 12:56PM

Author: prospecttreemortgages

Prospect Tree Mortgages are independent Mortgage Advisors in Ashford Kent, serving the surrounding areas with the best in free independent mortgage advice

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