Ok, so you are looking to purchase a place but don’t know whether to go with an Abbotsford mortgage broker or with the big bankers, and you want to get the best deal and the best rate possible (obviously, what fool would not?).
We should clarify the difference most importantly (because I didn’t know what the difference was too!).
An Abbotsford mortgage broker is a professional who is a freelance agent. They go between the borrowers (that’s you) and the lenders and are paid a commission from the lenders for linking a good borrower. They do not work for anybody, they work for themselves, and have contacts to bunches of lenders. Consider them as a recruiter- they seek out individuals interested in borrowing for a house and fix them up with a lender that will work for them. They can even go amongst the big banks and you for a mortgage. They do work by getting to know you, calculating what you could be affirmed of, sending your application, and talking with you what would work for you in terms of fixed or variable mortgage. Numerous individuals say they liked their mortgage broker because they can regularly get a better rate than if they went to the big banks themselves. A few people likewise say that the mortgage broker helped them get approved even though their credit history was not so hot.
A loan officer at the bank is sort of like a mortgage broker aside they simply work for one bank. A loan officer can sit down with you and discuss to you simply like a mortgage broker to see what your best fit is in terms of getting a mortgage. They can negotiate with you for you to get a great deal on a mortgage. They get paid by the bank, either through salary, or commissions + just salary, or commission.
So who to Pick?
Let’s do a pros and cons list so we choose.
Mortgage Broker Pros:
- You frequently get an exceptionally aggressive rate
- You don’t have to negotiate, they will do the negotiating for you
- If your credit score is not good, they can discover a lender who will take you on
- They can meet you on your time.
- They can get you approved for more (which can be a terrible thing as well, however)
- They can sometimes pay for things like investigations or appraisals out of their own pocket (they get less of a commission, however, they may get more word of mouth advertising, and you may go back to them once your 5 years term is up)
Mortgage Broker Cons
- The lenders that offer best rates are frequently smaller, with names of institutions that you have not heard of
- You may not be able to sit down with the mortgage broker eye to eye (depending on which mortgage broker you go with)
- The lenders that offer the best rates are frequently on the opposite side of the country
- Some might worry that mortgage brokers would not worry if you’re approved for an Abbotsford mortgage you can’t handle because they would get more commission
- They can approve you for all the more, even if your credit score is poor (this can be a good thing too- depending on your point of view)
- There’s no manager to talk to complain if they make a mistake
Big Bank Loan Officer Pros
- They regularly pay the appraisal fee
- Can have home equity line of credits
- They might have lower closing costs because they’ll pay for couple of the expenses
- Eye to eye person
- You can see them on your time as well (they have mortgage pros who can meet you in the evenings, or on weekends)
- Big bank- you know they probably won’t close down
- They can give you perks inside the bank like free safety deposit box, free banking etc.
Big Bank Loan Officer Cons
- Their rates regularly aren’t as best as Abbotsford mortgage broker rates
- The huge con is that you have to be able to negotiate (unless you receive a joy ride out of it like I do) or else you won’t get the best deal
- If your credit score is not up to snuff, they may not take you on
- You have to do the shopping around (go to diverse banks etc.) which can be time-consuming
- You might need to get “manager approval” for requests or whatnot
Good luck with your choice – and think hard and long about things, because it’s the greatest financial decision you will make in your life!