Should you Seal the Deal with the Bank or a Mortgage Broker?

When you’re considering a mortgage, there’s no one clear answer on who seals the better deal for you: a bank or a broker. On the plus side, a mortgage deal with a bank keeps you in direct, personal communication with bank employees. On the one hand, you have the advantage of having the bank employer sift through numerous loans within that specific banking institution to find the right loan for your lifestyle. On the other hand, your choices are limited only to what the bank has to offer. Other banks might have lower rates, but you won’t be able to know about these unless you do the scouting yourself. A mortgage broker is a middle party between the lender and the borrower. Ideally, a mortgage broker gets service fees from the lender for bringing a borrower his/her way. A broker may also ask for fees from the borrower because s/he scouts for the lowest interest rates available in the market.

You need to warn your mortgage broker to limit his/her choices of lenders to local banks. The processing period of online, overseas banks are generally longer because they don’t really have a full understanding of the properties needs. In other words, unless all of the lender’s questions have been settled, you won’t be able to close the deal.