gold dollarMortgage Brokers Or Bank Loan Officers?

Mortgage brokers are definitely a good option when looking for a home mortgage loan. However, many people will still turn to their local bank loan officers when they need a mortgage. Let's review the benefits of both options.

Bank Loan Officers And Bank Home Mortgages

Assuming you qualify for a home mortgage, the bank loan officers may offer several mortgage options, but you must be aware these options are all from the same local bank you selected. Because these loan officers work for the bank, they are not paid commissions for signing you up to become a bank mortgage customer. Their job description and mandate leaves very little 'wiggle room' for you to negotiate terms such as the mortgage rate of interest.

On a more positive note, banks are financial institutions who have no interest in owning real estate therefore, they tend to go the extra mile to help you keep going financially if your circumstances change.

They may be open to refinancing a mortgage if you lose your job and find it difficult to make payments. They know that if they have to foreclose, they will have to pay all the costs associated with the property, like taxes and maintenance. Banks would prefer to make money from the mortgage interest rates, rather than paying the costs of ownership.

This can be encouraging, as often with just a little help from their bank, borrowers can avoid losing their home through mortgage foreclosure. Never wait until the bank is ready to throw you out of the house before asking for help.

While it may be a little harder to qualify for a mortgage through the bank, those who already have a bank mortgage will usually be helped if they ask. Making it harder to borrow is not such a bad thing. It's better not to borrow at all if the result means financial hardship or even bankruptcy further down the road.

Mortgage Brokers

Good mortgage brokers have access to the entire mortgage or loan marketplace and with the many lending plans and options available from a variety of lending institutions.

A good mortgage broker should be able to get you the best mortgage deal along with far better interest rates than what your local bank may offer simply because he has access to the entire competitive mortgage marketplace. Often they will even get two or three lenders to compete for your home mortgage business.

You should be aware that mortgage brokers are usually paid by the lenders and even though their commissions are often included in the mortgage you apply for, the broker may charge you an additional fee for getting you that great mortgage. A good broker will NOT charge up-front fees.

As with any business, there are some unscrupulous mortgage brokers, but most are honest. Be sure to get everything in writing, just as you would with the bank loan officers, to avoid any misunderstandings or mis-interpretations of the conditions and terms of the mortgage.

Because mortgage brokers are dealing with a large variety of lenders, they may be able to negotiate terms, mortgage interest rates and fees much more easily than you can with the rigid policies of the bank and its loan officer.

A good mortgage broker can get you pre-approved for a mortgage within a few hours. If you're in the process of getting pre-approved or prequalified, you want to go shopping for a home as soon as possible and a lender should not be slowing you down.

The expertise and experience of good mortgage brokers could save you literally thousands of dollars over the term of your mortgage!

   How do you determine the best mortgage for you?

   To find the best mortgage deals, you need to be aware of what options are available for home mortgage financing.

<   See the tips for selecting the best fixed rate mortgage here.


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