Which is better, mortgage brokers or banks? We broke it down for you.
When working towards your home purchase, there are several places you can find a home mortgage loan. The two most common options are banks and mortgage brokers. Each of these parties will be of immense help when it comes to securing your mortgage.
Generally, mortgage brokers have more loan options, most of which are flexible. They’re considerate of borrowers who have damaged credit and tend to work quicker than banks. While banks typically have less options and tend to work on strict lending criteria, they sometimes offer great promotions for existing members.
The best option for you depends on your specific financial situation, home mortgage needs, and existing networks.
Let us have a more in-depth look into mortgage brokers and banks:
Mortgage broker have won a fair share of the market for years now. Their fast speed in closing loans and flexibility with their plans make them a favorable option for many home buyers. Since they operate under less strict conditions than banks, they are in a better position to customize loan recommendations to suit client needs. They also work side by side with you throughout the entire home buying process. Many have close relationship with realtors who can work with you to find your perfect home.
- Vast loan options
- Faster loan closing
- Better lending experience
- Better loan guidance
- Some operate online and lack a physical location
- In some cases, the broker might sell the loan to other services after closing
If you have an already existing relationship with a bank, it could be easy to reach out for help. Banks tend to have special offers for their existing customers and often use mortgages to promote their other services. Banks are subject to federal laws and hence tend to be stricter with their mortgage lending terms. This can sometimes make it more difficult to secure a home mortgage.
- Existing customers enjoy special offers
- They may have a lower interest rate, depending on the customer’s financial profile
- Strict lending terms
- Longer closing times
- Fewer options
- Inexperienced service
Which option is best for you?
There is no right or wrong option for you. Getting a home loan could be tedious and daunting or it can be a smooth process. The best options depend on your unique needs, preferences, and who you’re comfortable working with. However, mortgage brokers seem to be better in terms of different loan options, flexibility, and better mortgage rates. While our team may be a little biased, we want all of our customers to know their options and make a decisions they’re comfortable with.