If you are looking for a lender from whom you can take out a mortgage, then you have two options. You can take a home loan directly from a bank or you can employ the services of a mortgage broker. It is smart to know when to directly get a loan from the bank and when to hire a mortgage loan broker.
Banks don’t charge excessive fees.
If you don’t want to pay extra charges or run the risk of being ripped off by scam brokers, then going to the bank directly is a good move for you. First off, banks don’t have hidden extra charges because they don’t need to pay for any experts. They just give you the flat rate and a single service fee. Brokers get their commission fees, thus they put on some extra charges. If you want to save money then go directly to the bank.
You can trust an institution
There are also a lot of rip off brokers out there. This wont happen in the bank. All big financial institutions must adhere to a certain code of conduct, furthermore there is a well established complaint process. Therefore, what you see is what you pay. However, if you want to see some options of banks where you can get a loan from them a broker can help you out. But if you are sure about the bank where you will get a loan from, then you better not get a broker and of course you can avoid from paying the junk fees.
You don’t need to do a background check with the bank
This is the hard part when you get a broker because you need to check the background of the expert. You cant just go ahead and get the services of the broker who might steal from you. Banks have been doing business and are known to be legit and there’s no need for you to do your homework. There is no need for you to conduct an interview with the bank which you should do if you hire a broker.
While there are benefits from getting your loan from bank, it doesn’t mean that brokers aren’t good. It is just a matter of right timing. There are times when you need the services of a broker especially if you are not sure which bank you want to get a loan from. There are a lot of brokers out there who can help you save time and money as well but if you think that going directly to the bank is the right choice for you then go ahead.
About The Author
This guest post was brought to you by Michael. Michael has worked in the finance industry for many years and likes to share his tips on banks and finance.