Apply For a Mortgage Through a Bank or a Mortgage Broker?

Mortgage brokers offer huge advantages over a bank when it comes to applying for a mortgage. If you go to your bank were you hold your current account or any other bank your obviously only going to get offered that banks products so straight away your choice is almost nil. It will be employees who are hired to sell the banks mortgage products that will handle your application.

Mortgage brokers on the other hand are professionals that work with most to all of mortgage lenders. When you go to a mortgage broker they will analyse your credit and situation to decide which lender/s are best for you. They will then help you complete applications and submit these to lenders on your behalf.

Some mortgage brokers work with a selection of mortgage lenders but you can find many that will search the whole of the market. Whole of market will mean every deal on the market has been checked giving you peace of mind, you will know that the deal you have is the best possible deal for you. Some mortgage brokers can find smaller out of town lenders that may just offer you the perfect deal.

The mortgage broker will be working hard to secure a mortgage for you as in return they earn a fee from the mortgage lender. Some do also charge broker fees for the service they provide.

To find a good mortgage broker ask friends and family. You should be able to find at least one person who has recently used a mortgage broker. Mortgage brokers do a lot of their business through referrals, so the good ones should already have their name about.

Ordering your credit report is definitely something you should do before approaching a mortgage broker . This will give you time to contact any businesses that have made mistakes when adding details about you. The lender will base acceptance of a loan on your credit file. In the current market any defaults will mean you’re refused for a mortgage. These discrepancies need to be corrected before applying for any mortgage. Taking your personal copy of your credit file isn’t recorded but if you do have to make multiple applications because others are declining it will lower your score and make it even harder to get a mortgage.

Kim has 2 years experience in the financial service industry and working with mortgage advisers. She enjoys writing on various financial topics.