For a number of people, when it comes to getting a loan to buy their first property, thoughts turn to their bank. This is understandable as the bank was probably the first ever interaction you had with a professional financial organisation. Banks are a source of expertise in a number of financial areas, and it is always important when it comes to reviewing your financials to make sure that you are aware of the full range of services and products they offer.
However, a bank is limited in what it does offer, so it is really important to shop around and compare who and what is out there that can offer you the right sort of independent support, advice and help when it comes to a home or commercial loan. It certainly helps to compare what a mortgage broker will be able to do for you that a bank cannot, so let’s look at this in more detail.
1. Expertise and the personal touch
Banks are large conglomerates who will move staff around, and it can be difficult to build up that ongoing relationship with their customer. For a number of mortgage brokers, this is their own business and one they have built up over a number of years, having been able to retain consumer loyalty. They have a lot of sector experience and can turn around information very quickly that is tailored to the individual customer, whereas for banks this has to go through the ranks and is not so accessible.
2. A one stop shop approach
Mortgage brokers are not just about sourcing and securing the finances, but they understand there is a whole process around getting your home or commercial loan. They have information that covers everything from dealing with solicitors through to real estate agents and property advocates. If required, they can deal with all or some of these individuals and support you every step of the way. They will do as much or as little of the legwork as you require.
3. Choice
This is really crucial because although a bank is going to have some flexibilities and choice when it comes to their products and services, it is still going to be their products they are offering. When meeting with a mortgage broker, you are dealing with someone who can discuss or have access to not just the one bank but many more, along with a full range of services and products. Mortgage brokers are not tied in to the one product or the one lender in the same way a bank is, so you can be sure they are always going to be looking out for the best possible deal for you.
4. Specialisms
If you need someone with more of a specialism, for example, if you are going for a “buy to let” property investment loan, a mortgage broker will either have that expertise or offer access to those individuals with the necessary skills. When walking into your bank, usually you will be speaking with someone who is trained in general lending, if you are looking for a first-time mortgage or something that is more complicated, mortgage brokers are the specialists.
5. Providing introductions
This is not something that a bank is able to do because they want to keep everything in-house. A mortgage broker is able to provide you with introductions to the relevant professionals, from accountants and financial planners to insurance advisors. They can also offer you access to Buyers and Property Advocates, if required.
6. Source loans for you
Mortgage brokers are loan experts; they are constantly researching the market and keeping their information and competence up-to-date on a wide range of products. They will compare the rates across a large range of lenders and banking institutions in order to find the best possible loan to suit your budget and needs. This is not a service that the bank will be able to offer you. Also, if your bank turns you down for a loan or you might have been turned down in the past, they do not offer alternatives but a mortgage broker will work to find a lender that might be more lenient.
7. The personal banking touch
This is where you can see a real difference when it comes to dealing with a mortgage broker as opposed to a bank. The broker can save you a lot of time, effort and stress because they have proven strategies for chasing up home loan applications and tracking the process from start to finish. If your application goes through the bank, it can get bogged down in the bureaucratic process. It is then up to you to keep making the calls, along with all the other jobs on your “to do” list, which only adds to the stress of the situation. A mortgage broker is like a personal banker but one who won’t get shipped off to another branch so that you then spend time going through everything again with the next person who picks up your file.
For peace of mind, speak to a reputable and experienced mortgage broker for your next your home or commercial loan today.
