In the old days, people would go the nearest bank and deal directly with the credit officer if they wanted to loan money in order to purchase a house. However, in recent years more and more people avoid treating directly with bank officials due to the fact that they do not trust them anymore to give good advice. Intermediaries such as mortgage brokers have become so popular that up to 60% of transactions are realized through a broker. If you desire to contact a reliable broker.
The difficulty of borrowing
Current regulations make it harder to get a house loan from the bank. At present, credit officers are obliged to ask clients many more questions. As a result, the interview can last up to three hours. To be thoroughly interrogated on your financial situation and lifestyle, such as how much you pay for childcare, must be unpleasant. Also, those who have previously taken out a mortgage are no longer suitable. Those who do make an appointment with the bank are left to wait for weeks on end due to the fact that bank officials need to do their homework when it comes to potential borrowers.
Seeking out a broker
If you decide to contact a mortgage broker remember to inquire what types of loans they offer, how much will they charge you for and check client reviews in order to get an idea of the broker’s reputation. The best way to do this is to ask a friend for a recommendation or simply go and search online. Only an independent broker can offer a whole panel of loan deals. Brokers are very friendly and will do anything in their power to get the best deal and actually advise a borrower what to avoid. However, not all of them search the entire market and deprive of opportunities. Nothing will stop you from browsing the web and approaching the lenders yourself.
To sum up, deciding whether to go with a broker or dealing straightly with the bank is entirely up to you. On the one hand, banks have new policies that delay the borrowing process and perceive high interest rates; on the other hand, many brokers do not take their clients’ interests to the heart. Moreover, it is worth considering the financial aspects before contacting anyone.