When a home owner wants to purchase a house he or she needs to have a lumpsum amount to pay and most people do not have that kind of money upfront and therefore they have to go in for institutions that will help with financing them.
The first choice most go with is approaching a bank. However, this may not be the best option due to the following reasons :
- The homeowner will have to do all the running about
- The banks may overcharge and the homeowner will be clueless
- The bankers may not be very competent
- The loans offered tend to be conservative
- Bankers make false promises as well as mistakes
The other option is to approach what some will call My Local Broker. These mortgage brokers do all the running about for the home owner, they compare different rates from different lenders and banks, they give the home owner a variety of options to choose from.
Mortgage brokers are also able to help get financing for even tricky deals as well as they are flexible and work as per the schedule of the home owner. They mostly do not even charge the home owner for their services but get paid by the lenders.
However, there are some who may not have access to all the banks or they may make false promises to the home owner. There are some who are unscrupulous and do not negotiate the best deal for the home owner.
Therefore, in both cases – be it from banks or from brokers, whatever be the case, the homeowner should evaluate and study both – banks as well as the mortgage broker’s deals and then make an educated choice based on data rather than just on gut feeling or on emotions.
They should also check for references from both sources – the direct lender source as well as the brokers. They should check for how long the broker has been in business and what the past customers have to say about him or her.
Brokers normally are more personal and spend more time with the person explaining the intricacies of the loan as compared to most lenders.