Mortgage Broker vs. The Bank – What is better?

If you under consideration for a mortgage you might want to consider contacting a mortgage broker instead of a bank. You could be missing out by walking into the bank yo financing your next home, so make sure you read on and consider the points in this article as to why it could be in your best interest to use the services of a mortgage broker instead of going to your local bank.

1. The Mortgage Broker Works for You Perhaps the greatest benefit to working with a mortgage broker rather than a bank is the fact that the broker works for you. When you go to a bank to secure a mortgage loan, the bank specialist is solely concerned with the interest of the financial institution. The mortgage broker, on the other hand, is looking out for your best interest as he or she searches for the loan and institution that is best for you.

2. When working with a mortgage broker you will have different mortgage options with numerous different lenders, whereas a bank will only offer you their own product. A mortgage broker as many lenders to choose from and can provide you will several different lending options that might even be more flexible and fit your own situation better. Often a mortgage broker will offer you better rates and can work with people that have perfect credit or even the credit challenged.

3. Mortgage Brokers are Highly Trained While bank specialists do not require any formal training or license, the same is not true of mortgage brokers. In fact, most Provinces require mortgage brokers to meet a strict set of requirements, Furthermore, mortgage brokers must be licensed and must complete continuing education courses in order to remain licensed in most Provinces. As such, you can be sure the mortgage broker you work with is current on the latest real estate and mortgage financing rules and events.

4. Every time you apply for a mortgage with a lender an inquiry is made to your credit. Each inquiry affects your overall fico score by lowering it by 5 points. So never shop around for your mortgage with different lenders and provide them an application and permission to pull your credit history or you could damage your credit so much you could ruin your chances to buy your new home. A mortgage broker will only pull your credit once and can shop numerous lenders on your behalf to ensure you are getting the best possible rate without putting your valuable credit at risk.

5. With a mortgage broker you will only have to submit your information once. Let your mortgage broker do all the hard work for you and just get to the best rates and mortgage for you! Your mortgage broker will just tell you which lenders have which products and at the very best rates.

Tyler Tost have been a Calgary Mortgage Broker since 2002. For more information on obtaining a Calgary Mortgage with best rates or for mortgage calculators.