Is it better to go to mortgage broker or bank?

Which do you think is better a bank or a mortgage broker? Whether you have owned multiple homes, or are a first-time buyer this blog is for you.

Firstly, what is a mortgage broker and what do they do? To put it simply, a mortgage broker is a financial intermediary who matches their borrowers with the leading companies in the field in order to aid them in obtaining the best possible conditions on their mortgage helping to save their customers time and stress. On top of this, mortgage brokers are experts in their field, and can offer more personalised solutions and more flexibility in conditions compared to the banks.

Although this may seem to be better than what banks can offer, listen to the rest of the facts before you decide. Although a mortgage broker may compare multiple different options for your mortgage, this doesn’t guarantee it is the best deal out there. In addition, mortgage brokers may charge a fee for their services, and may not search the whole market.

Even though mortgage brokers make it more convenient and offer a wider range of options compared to bank, it doesn’t necessarily mean that it’s the best option for you. For example, banks will be able to offer a faster service for the customer and could possibly offer lower costs.

Banks aren’t guaranteed to be better than mortgage brokers. For example, most banks have limited offerings for mortgages, and can have little to no urgency.

Banks

Firstly, the banks will start with an In-House Consultation. This normally occurs inside of your local branch of the bank. This meeting sets up the entire process.

Secondly is a loan assessment, this is where the bank loan officer will assess your financial situation, and will recommend the best option for you based off of this.

Third is the Banks mortgage products and application submission. This is where you will choose what mortgage product you will choose, and submit your application for the chosen product.

Next is the in-house processing, this is where the bank deals with the entire mortgage process in-house, ranging from your application to approval. This leads to a streamlined experience.

Finally, is the approval and completion, it is here that you undergo the completion process, and finalise everything on the mortgage

Mortgage Broker

This process starts with an initial consultation. From this meeting the mortgage broker will learn about any information they need to start the process, including things like credit score and your financial situation.

Secondly is the Loan assessment and Lender selection. It is here that will evaluate your financial situation and credit score and based on this assessment will choose the best selection of mortgages they could find for you.

Third is the application submission and negation. This is when your mortgage broker will submit your application from to the lender, and unlike a bank will negotiate with them in order to try and get the best possible price.

Finally, is the Process approval and offer completion. This is when the lender’s underwriting department will review your financials to ensure that you are eligible and trustworthy, after your mortgage is confirmed and approved the mortgage broker will aid you in completing the final steps.

Using a mortgage broker over a bank has many pros. Mortgage brokers are the best when you require access to a wider range of mortgage offers and services, or when you have a unique financial situation or credit challenges. It is also a decision between if you want expert help throughout the whole process instead of trying to navigate the whole process by yourself.

On the other hand, using a bank is also full of pros, for instance some people have a good relationship with their bank so could possibly have better access to mortgage services. It could also make the process quicker if you know what you are doing as it means that you can contact the necessary people directly instead of having to contact someone else so that they can deal with it. Finally, before you make your decision, we will go through the processes both the bank and mortgage brokers follow.