If you’ve ever bought a home, or you’re considering buying your first, you’ve probably heard about mortgage brokers. You’ve probably also wondered about the benefits of using a mortgage broker when you could go directly to a bank. Well, read on to find out exactly how mortgage brokers can help you achieve your goals.
Thorough consideration of your circumstances
If you approach a bank directly for a home loan, you will get a certain level of personalised service. There will be a home loan officer assigned to you, and they’ll check your financial situation. But what if your circumstances don’t fit that particular bank’s very stringent requirements? Basically, you’ll be turned away pretty quickly.
By comparison, a mortgage broker performs a thorough check of your current financial circumstances and past history. Of course, banks do this to a certain extent too, but only to see if you fit into their box. A mortgage broker considers your circumstances and finds home loans and lending options that are best suited to you.
Unfortunately, when you go directly to a bank, it’s all about numbers. Since mortgage brokers need to find the best lender for you, they still need to consider the numbers, but they’ll make your circumstances work for you rather than against you.
Far more lending options are available
It’s a mortgage broker’s job to find and compare from a huge range of lenders to get the best home loan for you. This is in stark contrast to a bank where they will only tell you about their home loan products. Even though you’ll have a home loan officer working with you at a bank, they can only promote their own products and don’t have much knowledge of what different lenders may offer.
Mortgage brokers aren’t tied to working with one, or even a handful of banks. They can search high and low to find the best interest rates, the best home loan terms and also the loans that give you the best chance of success.
Assistance applying for a home loan
Navigating the application process for home loans can be tricky. There is a lot of evidence you need to provide, and with most lenders, a lot of hoops to jump through. It can be daunting, especially for first home buyers. Throw in some government grants and it gets even more confusing. So, having a little help to understand the process can be invaluable. It may even give you a better chance of successfully obtaining your home loan.
Whether you’re buying or building, the whole process can be very complex, so if you can take the hassle out of the home loan side of things, it makes sense to do so.
Considering your future financial needs
Finally, because a mortgage broker really understands your financial circumstances, they can also consider your future financial goals. Do you want to pay the loan quickly, or would you prefer to have extra money each month for living expenses? Perhaps you want to buy an investment property in a few years. Everybody has different financial goals, and using a mortgage broker can ensure you find a home loan that matches those aspirations.
When to go directly to a bank
If you have a great credit rating, solid lending history and a sizeable deposit, going directly to a bank may be a good option. If you’re confident you can find the best deal for yourself and you know that you meet the bank’s requirements, there is no need to use a mortgage broker.
That being said, even if you’re in a great financial position and can successfully get a home loan from most lenders, you need to be certain that you’re getting the very best on for your circumstances. Remember, a bank only offers you its own products, so you should do your own research before approaching any particular lender.
Ultimately, it all comes down to what you’re most comfortable with. If you’ve got great financial circumstances and you want to deal directly with a bank, you should go for it. Bear in mind though, there could be better deals out there, and over the course of a home loan, even the smallest difference can have a big financial impact.
If you’d like the convenience of an online home loan comparison tool combined with the personalised service of a mortgage broker, contact us at BrokerCo today!