You’ve pinched pennies, researched interest rates and nailed down your must-haves. You’re ready to pull the trigger on buying a home. Of course, at the heart of a new home purchase is just that – the purchase. You’ll need the money to fund the transaction. Most homebuyers will borrow this money in the form of a mortgage, but the age-old question remains: should you obtain your mortgage through a bank or through a mortgage broker?
Banks may seem like they’re a common sense choice for some borrowers because they advertise home loans as one of their primary service offerings. However, buyers with credit issues or loan stipulations may often have trouble securing a home loan through a bank. In addition, banks offer their in-house interest rate – regardless of whether a more competitive rate may exist outside their walls.
Mortgage brokers, on the other hand, compare rates from a large number of banks and lenders all at once, doing the legwork and offering you a variety of more competitive options. They are also more likely to work around less-than-perfect credit histories and can sometimes finance more complicated deals because their ability to access several lending partners.
Depending on your buying situation, such as the amount of money to be borrowed and your credit history, a mortgage broker may be the best route for financing a house purchase. After all, a mortgage broker is more equipped to handle tricky sales and get you in your dream home sooner.
Want a list of Krueger’s preferred lenders? Email us and we’ll provide up-to-date contacts for brokers in your area.