Almost all people, at some point in their lives, would want to purchase their own home. now unless you are wealthy or born with money, you will most probably get this done on a mortgage. Thinking of how to calculate your mortgage, you go and try it on your own but instead get bombarded by jargon and decide to just hire a professional. Then you get to a crossroads, would you hire a mortgage broker? Or a mortgage Specialist? Find out what to choose from reading below.
Mortgage Broker VS Mortgage Specialists/Advisor
A mortgage specialist or an advisor is a professional who has the expertise and does the same job as a mortgage broker with the exception that he works only with ONE financial institution at a given time they can negotiate with their bank on YOUR behalf to get the best deal on a mortgage. A mortgage broker on the hand is not bound by an employer or a single financial institution. They get their money from cuts for bringing a lender a good borrower. Let’s take a look at what these two each have to offer you as a borrower.
Mortgage Advisor/Specialist – Being on the exclusive payroll of the financial institution they represent, a mortgage specialist will actually allow for more personal meetings to you. They often pay the appraisal fee which is a plus. The banks they represent will be less likely to close down and you can be assured that there would always be someone to talk to at your bank if there are any concerns. However, you will likely get fewer discounts and higher rates than those of a mortgage broker. On top of that, the entire approval will be largely dependent on your credit standing. And because they are exclusive, you need to do a bit of legwork scouting other lenders
Mortgage broker – with a broker you get a more competitive rate since they are not exclusive, and they will do the negotiating for you. If you have a bit of a tarnished credit record, they may be able to work with a network of lenders that can work with what you have. On top of that, they actually might get you approved with more than ONE lender. The risk sometimes the lender that approved you is in another part of town OR just exists online which pose some sort of an unknown. Also because they are freelancers, there would be no one to complain to in case of problems.
It looks like it hinges on one factor and that is your credit standing. If its bad, go to a mortgage broker and if you are confident enough with it, go for the mortgage advisor.