As far as your mortgage application is concerned, wouldn’t you want to maximise your chances of being approved from the offset, so that you can focus on buying a brand new home? Banks are often the first port of call when it comes to applying for a home loan, but recently mortgage brokers have stepped into the limelight to act as an alternative channel when it comes to applying for your mortgage.
Mortgage Broker Vs Bank
On one hand banks are the source of your funding, so approaching them directly can certainly be appealing, especially if you don’t mind the stress of dealing with a loans officer, having to answer a ridiculous amount of questions and submitting a range of documentation whenever they demand it.
Plenty of people use banks and for good reason – they are easy to book appointments with in the majority of cases, they are typically willing to accept applications from potential borrowers and if you catch them on a good day, you might not have to work with a miserable agent. As you might be able to tell by now, we’re using a bit of sarcasm when writing this article; mainly due to the fact that banks can be terrifying entities to have to deal with and that’s why so many turn to mortgage brokers.
Why use a mortgage brokering agent?
On the other side of the coin, these agents are often highly trained in the art of customer service – and when paired with their extensive financial service they can offer somewhat of a powerhouse of help for first time home buyers, property investors and refinancers alike. The great thing about them is that they act as the buffer between borrower and lender, allowing people in your position to sit back and choose from a selection of interest rates and home loan deals, before deciding on the one that appeals the most.
This also gives you back a bit of the power that you’ll lose by approaching a bank directly. When talking to a lender, you will have to bend the knee to their demands in an attempt to receive approval on your loan application. When applying via a mortgage brokering service however; they will do the leg work and if the bank aren’t budging on their expectations, you could always try another one instead – allowing you to keep your options open.