Has the homebuying process got your head spinning? Did you assume coming into the process that you would speak with a real estate agent, make an offer, then pop the champagne in the empty living room of your new home?
Unfortunately, there’s a bit more involved in the process. Lucky for you, working with a mortgage broker is one of your options.
While you and the real estate agent go through the process of choosing your dream home, it’s the job of a mortgage broker to make sure you can get a mortgage. They go through the detailed paperwork. They work with lenders to ensure the champagne is possible.
The most important part of the home buying process is getting approved for the funding to move in. So it’s important not to overlook the process. And one of the critical parts of this process is choosing: working with a mortgage broker or a banker.
Broker versus banker
The traditional method of finding funding for a mortgage was to go to the bank and work with a mortgage banker. Your options were limited to your local bank and they would fund you if they thought you were financially trustworthy.
The process favored banks.
Then came the birth of mortgage brokers. Brokers are entrepreneurs. They work for themselves. They aren’t restricted to funding through a single bank.
In short, a broker works for you, while a banker works for the bank. And that makes a big difference when it comes to finding you the best deal on a mortgage.
Besides who they work for, what are the advantages of working with a mortgage broker?
#1 – Speed
A broker doesn’t work at the bank’s speed. They don’t work “banker hours” or turn off the lights at 5:00 on the dot. A mortgage broker is a person, not a bank. They know the urgency you feel as a homebuyer because they’ve most likely been there.
On top of that, they have a sense of urgency because they’re working directly with you. Working with a banker, on the other hand, is a slow process because the corporate structure gets in the way. They have set standards that aren’t overlooked. They worry about the bank first and you second.
That’s not the case when working with a mortgage broker.
#2 – More options
With a banker, you’re limited to what the bank has to offer you. Interest rates, dates the funds can be available, and anything else you need is in the hands of the bank.
When working with a banker, the bank has the upper hand. When working with a mortgage broker, you have the advantage. How? Because a broker shops around. They look for the best deal for you rather than simply placing your need on the desk of a single bank executive and taking what they offer.
Want a lower interest rate and a lower monthly payment? Working with a mortgage broker to shop for rates is your best option.
#3 – Technology
Want to know the status of your application? Wondering which paperwork has been completed or what you need to do next?
Technology has been the key differentiator in communication between brokers and their customers. When working with a mortgage broker, you have access to the technology they use and can check on the status of your loan anytime, day or night.
Bankers won’t answer your calls outside of banker hours. So what happens if you can’t manage to step out of work to call? Or if the hold time will exceed the time you have available to call and check on the status of your application?
Brokers have superior technology and this allows you to be aware of every step of your loan application process.
The choice is clear: Working with a mortgage broker is your best option
Working with a mortgage broker means working together. Brokers represent their customers while bankers represent the bank.
Don’t let the bank push you into a corner. Know your options and utilize the benefits of a mortgage broker.