TORONTO, ON (PRWEB) August 19, 2013
Before a homeowner decides where to go to apply for a mortgage application, they need to decide if they want to go to a mortgage broker or directly to a bank to complete the application process says KANETIX.
In order to apply for a mortgage, a homeowner will have to consult with either a mortgage broker or a bank loan representative. However, a mortgage broker is different from a bank loan representative in a number of ways. A mortgage broker is a professional who works for a company that is not directly affiliated with any one specific bank. The mortgage broker may show multiple loan programs from different banks to compare, and this can benefit a homeowner by simplifying the process of shopping for a new mortgage. The broker is not obligated to sell specific loan programs, and because of this, it may be possible to find a superior loan program through a mortgage broker. About three quarters of buyers who work with a mortgage broker report being satisfied and would use a broker again or recommend to friends that they use a broker. In addition, a mortgage broker may provide honest information about the loan program that is best. This, however, is not always the case.
Bank loan reps, mostly often referred to as Mortgage Specialists, are employees of a specific financial institution. Because of their affiliation, their primary goal is to sell a loan that is offered through their bank. A loan rep from one bank will not offer a loan from another bank, so loan options available through mortgage specialists are fairly limited. A bank loan rep or mortgage specialist will, however, help to find the best loan program available through that particular bank and may work to structure the loan in the most advantageous way possible. The bank loan representative may also be more familiar with in-house lending requirements and unique lending situations, and this knowledge and expertise can benefit a homeowner when they apply for a loan.
It is quite common that working with a mortgage broker costs about the same amount of money at closing. A homeowner will be responsible for all of the standard bank fees with both options, but a mortgage broker makes money by charging a fee. In most cases, however, the mortgage broker receives their fee directly from the lender (who will be profiting from the interest one will pay over time). There may, however, be unexpected legal fees for a new mortgage, sometimes as high as $1000. It's not unusual for a lender to cover legal fees and even appraisal fees, so homeowners should inquire about their options before they agree to the terms.
The fact is that there is no right or wrong option that is best for every individual in every mortgage application situation. Each mortgage broker as well as each loan representative will put forth a different amount of effort in helping a homeowner find the right loan for their needs. Some may be more helpful than others. Because of this, it is often best to delve into the mortgage application process by exploring all of the options in greater detail. If one is interested in applying for the best loan program available they should take the approach of leaving no stone unturned. Use the services of a mortgage broker to help shop, but also put forth some effort to shop directly with the banks; one can even explore their options online. Shopping online will provide a variety of loan quotes. With these quotes, homeowners can compare the rates and fees for all options.
Understanding the differences between a mortgage broker and a bank loan representative is important, but it also can create confusion. When one shops for a loan, they should consider how much time and effort they are willing to put into the task of finding a great loan program for their needs. Shopping for a mortgage loan is not as complicated and time-consuming as it once was, but it can be overwhelming. One reason for this is because of the many loan comparison websites one has access too. One may consider using one of these websites to learn more about the options, but keep in mind that many of these websites have loan programs listed from both brokers and banks. If a homeowner shops with a broker, be sure to inquire about who the actual lender is for a loan program they are interested in before applying.
Launched in October 1999, KANETIX was Canada's first online insurance marketplace and today provides over a million quotes per year to consumers looking for insurance, as well as comparisons for mortgage rates and credit cards.
The KANETIX comparison service is a one-stop shopping environment for consumers. Each day, thousands visit KANETIX to comparison shop their various financial needs. Shoppers choose what they want to compare, obtain a quotation and complete an online application or, with the help of KANETIX connect with the provider to purchase or apply for the product over the phone.
Through its Software as a Service team, KANETIX is also the leading provider of online insurance quotation technology, developing online quotation systems, mobile solutions, actuarial tools and websites for many of Canada's largest insurance brands.
For more information, visit KANETIX.ca or contact:
416.599.9779 ext. 343