In many cases, people who look for a loan or refinance come across one of the difficult questions – “should I go for a broker or bank loan officer?” It is more evident among the new home buyers. Especially who are unaware of the difference between a Mortgage Broker and a Loan Officer.
So let’s put it here in simple words!
Loan officers are typically employees of the lending institution. They may be able to offer various loan products.However, all the products will be from the same lender. Mostly they are paid through the company they work for.
Mortgage Brokers, on the other hand, are independent who works as a “middle man” between lenders and borrower. Hence, a mortgage broker has access to various loan products from different lenders. Mostly they are able to offer better deals for their clients. They do not get paid unless they close on a mortgage. Therefore, they will work thoroughly to provide the borrower with a suitable loan.
The research says that mortgage brokers are now the number one choice for one in every two consumers who are seeking a home loan or to refinance an existing loan. Businesses are also engaging finance brokers to find loans for the car, truck, asset finances and equipment leasing.
So, here are some of the benefits you as a borrower can get from a mortgage or finance broker-
A good broker knows the industry, the lenders, their products and their requirements. It can surely save you a lot of time and energy on research. They will also put the time into finding out about your particular credit situation and have a wealth of experience to draw on to help you simplify it.
Translate industry jargon
Brokers are able to make sense of what the loan documents and lenders are saying – put it into lay-person’s language. So you will be aware of what deal you actually going to get.
Get you what you want
A broker can also help you to determine your borrowing needs and repayment capacity, and choose the best product to suit your requirements.
Give you a broader choice
With access to the multiple lenders, a broker can offer you more help to choose from a larger selection of loan products. While a loan officer or bank can only offer you its own products.
Help you compare apples, oranges, and the whole fruit basket
Brokers have the knowledge, industry insights and tools to compare hundreds of products and you get the right loan for your circumstances and needs.
Find you a good deal
Loan providers are always spruiking a special deal or two, and these could make a big difference to your repayments or success rate. A broker will know which of the deals on the market at the moment is right for you.
They’re in it for the long haul
A broker oversees and manages on your behalf the loan’s progression right through to the end. By the way, ‘the end’ isn’t when you sign the documents and buy your property; you can expect your broker to keep track of you and your changing needs, helping you should you need to switch products or wish to purchase another property.
Should I go for a broker or loan officer?
It merely depends on what the person preferred the most!
It is presumed that a loan officer may able to process loan documents speedier than a broker. However, a broker can provide more loan options and opportunity to get better and suitable deals whilst saving you ample of time to conduct research and give hassle free advice because they are not tied to a single lender.
Finmortg Brokers have both the industry knowledge and expertise in mortgage and business or commercial lending. With a support of the advance system, our dedicated team can find the suitable deal, process loan application quickly and continue support till the final settlement.
If you’re in the process of finding a new mortgage or commercial loan, then don’t delay further to Contact Us. We will get you the suitable deal!