When planning to apply for a mortgage loan to buy a new house, you might wonder if you should apply for loans directly from banks or hire the help of a brokerage firm. Though they both facilitate your mortgage loans, there are several differences that make one a better fit than the other.
Banks assign loan officers to deal with customers looking to get a mortgage loan. They may be the ideal choice if you want to invest more carefully and if you prefer a direct bank service. However, loan officers work for the banks, so they offer mortgage terms that are in the banks’ best interest and not yours. Also, banks are more likely to disapprove or refuse your application if you have a credit history that they find risky to deal with.
What Mortgage Brokers Do
Mortgage brokerage firms are “middle men” who can help you get mortgage terms based on your unique financial capacity and needs. They work with banks and mortgage lenders in coming up with the most feasible terms they can offer you. They don’t directly work for the banks or lenders, so they are more capable of personalizing their services for your unique situation.
They also have offices and branches with staff for various departments, so they can delegate tasks to accommodate inquiries and process applications faster. However, brokerage firms also have some disadvantages and not all mortgage brokerage firms are the same. To help you decide if a brokerage firm is right for you, here are some things you should look for in a mortgage firm:
Mortgage Brokers vs. Real Estate Agents
They are usually associated with real estate offices – real estate agents and mortgage brokers cater to the same consumers so they build partnerships or associations that make the house-buying processes easier. This system can help them make referrals and recommendations that are more applicable to different clienteles. Nowadays, real estate offices have in-house representatives from mortgage brokers and mortgage lenders that the customers can directly inquire with. This means they can quickly learn how much and how long mortgage terms can apply.
How to Find Mortgage Brokers
They have official websites where you can look them up – the top brokers in the housing market do not only appear in listings or portals that display basic information or details about their companies, they also have official websites where you can directly refer to for more accurate information about their services. Their websites can also feature calculators that help you get instant quotes, email support, chat support, and direct line support. Features like these can help you contact them more easily and get real answers more quickly.
They offer realistic discounts – big discounts can be tempting, but they are usually fronts for hidden fees or expenses. If a brokerage firm offers you discounts or cheap rates that seems too good to be true, they may be hiding details that they will only reveal once you make the deal. Top brokers avoid that kind of customer trapping because such scam will affect their reputation and damage their names.