Purchasing a home is a big deal. For most people, it is the single biggest investment they will make. Before jumping in, it is very important to know how you want to proceed regarding the mortgage aspect. There are two paths you may choose to follow; one using a mortgage broker and the other using a mortgage specialist.
While they may sound similar, they are actually two very different options. A mortgage specialist works for one specific lending institution, most commonly a bank, and can only sell that institutions mortgage products. A mortgage broker on the other hand, works for an independent firm and can therefore offer rates and products from multiple lenders that they have access to.
Choosing which mortgage path to follow can be stressful so keeping the following points in mind can help you make your decision.
Many people already have existing services set up with their banks and for this reason feel that going with a mortgage specialist makes more sense. Having all of your finances consolidated into one portfolio with a well-known and reputable bank is comforting for many reasons. If you have existing accounts with that institution, they will already have a lot of the required information necessary for a mortgage application and will already be familiar with your credit score and history making the paperwork process a lot faster and easier. Using a mortgage specialist will also provide a sense of security knowing they are employed by a well-known financial institution.
While these are all great reasons to work with a mortgage specialist, you must also remember that because they are working for one specific lending institution, they can only offer that company’s products and rates. Additionally, mortgage specialists are often paid based on the rate they sell you and negotiations are done between the homeowner and the specialist only, resulting in what can be a higher interest rate than what is being offered elsewhere. This is why many homeowners and buyers decide to use a mortgage broker instead.
Mortgage brokers have access to multiple products being offered by several different lending institutions. They shop around, negotiate, and because they do not benefit from selling you a higher rate, will take the time to get you the best rate available. A common fear is that mortgage brokers do not work for big, well-known lending institutions making some clients feel uncomfortable when it should actually give you peace of mind. Mortgage brokers are required to complete ongoing courses, training sessions and tests to maintain their license and continue working in the field. Mortgage specialists are trained by the institution they work for and available only during company hours whereas brokers can be contacted anytime for the most part.
If you are considering a private mortgage, contact Arise Mortgage Corp. for any mortgage related questions, concerns or inquiries you might have. They will make sure you make the right decision when it comes to the most important purchase of your life!