Working with a mortgage broker can save you time and fees. Cons to consider include that a broker's interests may not be aligned with your own, you may not get the best deal, and they may not guarantee estimates. Take the time to contact lenders directly to find out first hand what mortgages may be available to you.
What is the benefit of using a mortgage broker?
Pros of working with a mortgage broker A mortgage broker may be able to get you a lower interest rate and lower fees. Brokers have access to a broader assortment of loans and lenders and may be able to find a better deal than you could get for yourself. A broker can save you time.
Is it cheaper to use a mortgage broker?
Pricing with mortgage brokers can be just as competitive as a bank, as long as the broker doesn't take too much off the top. Wholesale rates can actually be much cheaper than retail interest rates you'll get with banks, meaning a lower monthly mortgage payment.
What is the disadvantage of mortgage broker?
One of the big disadvantages that comes with using a mortgage broker is that you are going to have to pay for them. Even if you do not directly give them anything up front, they are going to get paid by you one way or another. Other times, they will get a certain percentage of the value of the mortgage.
Is it better to work with a mortgage broker or bank?
A mortgage broker can offer a wider array of options and streamline the mortgage process, but working directly with a bank gives you more control and costs less. Whether it's better to work with a mortgage broker or get a home loan directly from a bank depends on your financial situation and your preferences.