For most home buyers, the idea of selecting the right lender can be quite time consuming. So here is the question, should you select a banker or a broker?
Today, we will list some of the common questions you might have, to compare banker and broker.
1. What is banker and broker?
Banker and broker are two different channels in your mortgage application process:
Banker (or Home Finance Manager) works for the bank, and specialises in mortgage applications;
Broker works independently, and acts as an intermediary agent between clients and a number of banks.
Banker works for the bank, and his job is to sell his own company’s lending products.
Broker has more choices regards to banks and lending products, so broker works for his clients, and recommends products based on clients’ best interest.
2. How could broker make money?
Banker and broker generally don’t charge clients for their service. Broker only receives commissions from the bank after the loan application process.
Since the commissions broker receives from different banks are quite similar, the lending products recommended are truly for clients’ best interest.
3. I’ve got all my accounts with one bank already. Why would I bother to go outside the bank and choose a broker?
The reason is simple: your bank’s lending products are not necessarily the most suitable products for you.
Some banks’ mortgage application process could take longer, some banks’ borrowing power could be less, and some banks’ interest rate and fees could be higher. So if you want to get the best deal for yourself, do more research before the mortgage application process. Or simply contact your broker to get some professional opinions.
Even if you’ve been using the same bank for years, there’s a slim chance of receiving any special treatment with your mortgage application. On the contrary, most banks only offer great deals to new clients, including refinance cash back, and higher pricing discount.
4. Isn’t it easier to go to banker, as they are the direct channel from the bank?
Not really. Both banker and broker will need to submit the same loan application, and upload the same financial documents.
Besides, banks also approve the loan based on client’s overall financial situation, not based on which channel loan was submitted in.
Even if your loan application had some issues with one bank, broker is quite likely to assess other alternatives to help you secure a loan, instead of denying outright.
Have any questions? Give us a call, and our professional brokers in MoreMore Finance can work with you, to get your dream home sooner.
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