One of the first decisions you are going to have to make when you start your home buying journey is whether you want to work with a mortgage broker or your banker. Now I know a couple of you go-getters just thought to yourself. “I don’t need them, I can do it myself!” You’re right. You can do it by yourself. But mortgages are a complex industry and at the end of the day in order to find the best options for you, you will need connections with lenders that the average person simply does not have.
A lot of people aren’t aware that their decision between broker or banker will change their mortgage experience drastically. Before you get started applying for a mortgage it is a good idea to sit down, weigh the pros and cons of both brokers and bankers, and make the decision on who is going to be able to help you the best!
WHAT ARE THE MAJOR DIFFERENCES BETWEEN WORKING WITH A BANKER VS BROKER?
BROKER VS BANKER
Acquiring your mortgage financing through your bank is an alternative that a lot of people do choose to take. Your bank will have options for mortgage loans right through that specific bank.
A mortgage broker on the other hand will work at a mortgage brokerage. They will build relationships with a variety of lenders that have many options for mortgage financing.
Bankers have limited access to options. Mortgage bankers’ main job is to sell the services that the lender they work for provides. This results in limited options for you since you will only be exploring loans that that specific lender offers.
Mortgage Brokers have access to the largest range of loans since they do not work specifically for one lender. They have built relationships and connections with the widest variety of lenders. This means you will have more options to find a loan that works for you and your unique circumstances.
ADVICE & OPINIONS
Bankers can tend to gravitate towards a biased option. As we just spoke about, bankers are employed to sell a lender’s specific products, which in the world of sales means they are rewarded for selling those products. Advice from a banker is not always what is best for you, it’s more often what’s best for the both of you. Do not pick your mortgage based on a compromise!
The advice you are given from a mortgage broker is unbiased. Since they do not have a specific lender they need to be pushing you towards, they are more likely to recommend what is genuinely best for YOU. Not to mention referrals are the lifeline of all mortgage brokers which only encourages them to go above and beyond for every one of their clients.
PROTECTION OF YOUR CREDIT SCORE
A common mistake people and occasionally bankers make when applying for mortgage financing is pulling multiple credit checks within a short period of time. Too many credit checks does lower your credit score and will make finding lenders more difficult.
Mortgage Brokers are able to navigate this issue by only pulling your credit score to use across multiple applications for multiple lenders. By only checking your credit score once you are able to protect your credit score from any negative repercussions.
EDUCATION AND EXPERTISE
Of course, Bankers do know what they are talking about and have valuable information. But the experience and educational requirements between a broker and banker are non comparable.
With a mortgage broker’s experience and expertise you are guaranteed to save time and money. A mortgage broker knows the in’s and out’s of the mortgage world, which gives you the opportunity to kick back and not worry about multiple applications across multiple lenders. Just let them do the work!
MORTGAGE OPTIONS WITH UNIQUE CIRCUMSTANCES
Bankers are looking for the ideal borrowers, meaning good credit, stable job and a significant down payment. If you don’t fall within their expectation then a bank will immediately disqualify you for any financing options.
A mortgage broker has more flexibility when it comes to finding financing for situations that might not be considered ideal to a banker. Since mortgage brokers have access to a wider range of lenders they are able to find solutions for whatever an individual’s circumstances may be. Whether you have a low credit score, an untraditional income or even less down payment savings, a mortgage broker will be able to explore financing that will work for you.
Seeking professional help while researching and applying for mortgage financing is crucial. Making sure the process is stress free, informative and that you get the best mortgage possible is on the top of our priority list. Give me a call if you’re ready to start!