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Is it better to use a mortgage broker or a bank to buy a home?
While both options can be used when sorting a house it is usually down to personal circustance for which one is the best option.
Though the current housing market has been described as terrible, with high prices compounded by high mortgage rates, there may be some poor souls looking to buy. The majority of people will need a loan in order to purchase a house to cover what isn’t paid by the deposit. There are a few options.
What are the differences?
A mortgage broker will typically charge a fee for their assistance and connections. They will usually have experience in the industry and act as a middle-man/woman who can do most of the work for you.
- Make sure your broker is accredited so you are not being scammed.
- Brokers can help people with poor creditratings find loan options that can be applied for.
- Brokers work on commission so it could be in their interest that you get yopur mortgage from a certain place, potentially scuppering the best deal for you.
- Ask about fees upfront so there are no hidden charges.
A bank or credit union is the traditional method for financing a house. You may be able to get a lower interest rate if dealing with a bank you have used before and there are no extra fees except those declared.
- Banks have control of their own rates meaning it could be possible to negotiate on this. However, this works both ways as a poor credit score will likely mean the bank will not want to part with their cash.
What do the experts say?
Experian recommends you choosing the option you have the best personal relationship with. This could help with all manner of things, from prices to mortgage rates.
If you don’t have either to hand then the choice is freely up to you.