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Understanding Why You Should Use a Mortgage Broker Instead of a Bank

 

Understanding Mortgage Brokers

More and more property buyers are choosing mortgage brokers to secure a new mortgage or renew an existing mortgage, but why should you use a mortgage broker instead of a bank?

It is common for people to want to use their own financial institution when looking for a new mortgage. There is an existing relationship with a level of familiarity between the bank and borrower. Some people make the assumption that all mortgages are essentially the same in terms of mortgage rates and terms so it pays to go with a bank you are already familiar with. This is not the case at all.

Making these types of assumptions today can have very expensive consequences. The major banks are not the only types of financial institutions that are available to secure mortgages. An existing relationship with a bank may help you get a decent mortgage rate, but how will you know you are getting a truly competitive rate that could save you many thousands of dollars over the life of your mortgage? You won’t know unless you shop around.

With the large number of potential lenders available today, it would take a very long time to personally contact each one to receive a mortgage rate quote. Mortgage brokers provide a FREE, professional and very valuable service for clients by doing all the legwork of finding and comparing the best possible mortgage products and rates available. Mortgage brokerages often compare the best rates available from dozens of different lenders (including major lenders, credit unions, trust companies, etc.) and may have access to lower, unadvertised rates. Mortgage brokers can also compare different mortgage terms in order to find the best mortgage for each client’s specific needs.

Changing the Way Mortgages are Secured

Traditionally, people secured mortgages by physically going into the bank and filling out a mortgage application. This method was uncomfortable and is often regarded as the most intimidating part of the property buying process.

Today, it is possible to apply for a mortgage through a mortgage broker without having to leave your home. Mortgage brokers are independent and objective because they do not work for any specific lenders. They can be a valuable source of expertise and professional advice regarding mortgage terms, rates, various mortgage products and even current market conditions.

Attempting to negotiate on your own with various banks and lenders is not only time consuming, but it can also negatively affect your credit rating if each lender performs a separate credit check. A mortgage broker will preserve your credit rating by negotiating on your behalf with many institutions while only performing one credit check.

The Convenience of a Full-Service Real Estate Agency

JN Asensio is a full-service real estate brokerage that offers clients the ultimate in convenience with one-stop shopping for all of their real estate needs. The team includes full-time licensed REALTORS®, experienced administrative staff and a mortgage brokerage.

The entire JN Asensio team is dedicated to working hard to create strong client relationships by supporting clients through every step of the property buying and selling process. Their success is evident in the amount of repeat business and referrals that are received. Choosing expert real estate agents and a mortgage broker with access to many different lenders is the absolute best way to protect all of your interests in a hectic real estate market; make the most of your time and money by contacting JN Asensio today.