Banks vs Mortgage Brokers – Why Brokers Win
When it comes to getting a mortgage, many borrowers find themselves at a crossroads: go to the bank or go to a mortgage broker? Both will help you finance your home but there are big differences between the two and understanding those differences can make all the difference in your home buying experience.
At the Jason Waters Lending Team we believe mortgage brokers offer a better more personal service than the big banks. Here’s why:
1. Options vs Limited Choice
Banks are limited to their own loan products. If you go to a bank, you’ll only have access to their rates, terms and conditions. If their products don’t fit your financial profile or goals, you’re stuck with what they offer even if better options are available elsewhere.
Brokers like us work with multiple lenders. We act as intermediaries, shopping your loan around to find the best rates, terms and programs from a wide range of lenders. This gives you more options and means we can tailor a mortgage solution to your individual needs.
2. Personalized Service vs One Size Fits All
Banks are like a big machine – you’re just another number in the system. Loan officers at banks follow a rigid process and the level of service can vary greatly. Because banks deal with high volumes of loans, they may not have the time or flexibility to provide personal advice.
With a mortgage broker you’re working with someone whose success is tied to your happiness. We take the time to understand your financial situation, goals and concerns and provide personalized solutions that work for you. As brokers we’re invested in your success, and we guide you through every step of the mortgage process.
3. Competitive Rates vs Fixed Bank Rates
Many borrowers assume banks always have the best rates but that’s not always the case. Banks have fixed interest rates and fees that can’t be negotiated. If you go to a bank, you could miss out on a better rate elsewhere.
Mortgage brokers have access to wholesale rates from multiple lenders. This allows us to compare offers and negotiate on your behalf. Brokers can often get lower interest rates and better loan terms because we’re not tied to one institution. This means more savings for you over the life of your mortgage.
4. Speed and Efficiency vs Bureaucratic Red Tape
The mortgage process at a bank can be slow and bogged down by red tape. Banks have multiple departments handling different parts of your loan which can lead to delays, missed communications and a less efficient process.
As brokers we streamline the process by being the central point of contact for your mortgage. We manage the paperwork, handle the communication with lenders and work fast to get your loan settled on time. Our goal is to make the experience as smooth and stress free as possible.
5. Solutions vs Standard Approval Criteria
If you don’t fit the standard mold of a “perfect borrower” a bank may decline you. Banks have strict approval criteria which may exclude self-employed, borrowers with less than perfect credit or those looking for nontraditional loans.
Brokers specialize in finding solutions for borrowers with unique situations. We work with lenders that cater for a range of credit profiles and offer specialized loan products like FHA, VA and USDA loans. Whether you’re a first home buyer or someone with a complex financial situation brokers can offer flexibility where banks can’t.
6. Long Term Relationship vs Transactional
For many banks the mortgage process is transactional. You get the loan, and they move on to the next client. There’s little incentive for them to maintain a long-term relationship once the deal is done.
As brokers we aim to build long term relationships with our clients. We provide ongoing support and guidance not just during the mortgage process but throughout the life of your loan. Whether you need to refinance, invest in a second property or just have questions down the road we’re here for you every step of the way.
In Summary
Banks can do the job, but mortgage brokers offer a level of service, flexibility and financial benefit that banks can’t. When you work with The Jason Waters Lending Team, you’re not just another file on a desk – you’re a valued client who deserves the best options, rates and personal service. We work for you not the bank to get your mortgage right for you and set you up for long term financial success.
Ready to experience the broker difference? Contact us today.
