Unlike in the past, homeowners can now obtain their mortgage loans through several financing options available on the market. With a myriad of options to choose from, first-time home buyers are finding it hard to understand and navigate through the mortgage market. Most of them don’t have a good understanding of the mortgage application process and can’t understand why brokers have better options than banks. Others can’t understand why bankers have seen their ranks drop drastically in a market that they controlled a decade ago. Even the experienced home buyers can’t tell why and that would not be a surprise. If you have been wondering why brokers have become a favourite option for many, read on to find the answer and discover why brokers are beating bankers hands down.
Before we look at why people prefer brokers to bankers, let’s take a look at what a broker does. Brokers are middlemen who work with a variety of lenders to find loans for borrowers but does not give out the money directly. Therefore, brokers are indirect lenders. They are responsible for evaluating your situation and finding out if you are credit-worthy. They will check your income levels to determine your ability to repay the debt. In simple terms, a broker is responsible for assessing your information and will help you get a loan that matches your needs. Why do homeowners go for brokers instead of bankers?
Broker Vs Banker Options
Ask a borrower what brokers offer that a direct lender can’t and the response will most certainly include multiple financing options. Brokers are not tied to any one bank; they work with a variety of lenders. They have access to a database, which contains information about the available lenders. In most cases, a broker may have contacts with 20 to 30 lenders that clients can choose from. What’s more? Home financing options are evolving and increasing day by day, and it’s becoming hard for customers to understand them all at once. For this reason, first-time homeowners are going for brokers to help them understand and choose the best option.
Vast experience is one of the main reasons why banks have been losing their grip in a market they once dominated. Brokers are dedicated and have years of experience dealing with different banks. They are passionate about their profession and endeavour to maintain strong relationships with their clients. Banks, on the other hand, are big institutions and move their staff around. This makes it difficult for them to acquire sufficient experience and maintain their client base. Modern borrowers know that the market keeps on evolving and requires experience to get a good deal, and this is one of the reasons they are going for brokers.
The modern clients are attracted to specialized businesses because of their effectiveness and efficiency. We are at a time when everybody wants to deal with experts. When it comes to the mortgage market, financial institutions often do not have the training and specialization in this sector. They are trained to serve whoever walks into the branch. Since the market has involved, most clients need specialized assistance to understand what they are getting into. Most clients have realized that some lenders are clueless, and they now want to deal with specialized brokers.
Great Customer Services
Like we mentioned before, banks are big institutions and deal with many clients. This makes it difficult for them to offer satisfactory and on-time services to their customers. Most borrowers go home unhappy and with a lot of questions. However, those clients who work with brokers are often happy and understand more about mortgages. Why? This is because brokers have exceptional customer services and go an extra mile to make their customers happy. They offer personalized services that clients enjoy.
We all hate it when people keep us waiting, as it’s exhaustive and irritating. This is what happens when homeowners opt to go for direct loans. Those who go to banks have to endure long queues and follow up the progress of their loan application. Brokers have a system that makes it easy for them to follow up your loan and keep you informed.
Personal Lender And Advisor
You heard it right! A broker is your perfect personal lender and advisor. Due to their years of experience in the mortgaging sector, brokers know what needs to be done and go all out to make sure it happens. They will guide you and ensure you make the right decisions. They will be accessible 24/7. Bankers may be good when it comes to financial issues but will not be there for you because they are required to serve other clients. Talking to reputable brokers is what you need if you want a smooth mortgaging process.
There are countless banks in Australia, and you don’t have the time and the resources to visit all of them. Not to mention that you can’t understand their complex mortgaging policies and processes at once. An indirect lender saves you time. Seasoned brokers will evaluate your situation and match you with the most appropriate lender as quickly as possible. The choice they give you is often the best deal you can ever get. Brokers will also handle all paperwork and interact with the bank on your behalf, which can help you eliminate stress arising from the intricate application process.
You Pay Less
In the past, most clients had the misconception that they would pay more through brokers. Things have changed, and homeowners have realized you pay less if you go through brokers. Want to save money? Go for knowledgeable brokers.
Now that we’ve reviewed the terms of brokers vs bankers, you certainly know the right choice. If you are in Australia and want to be a homeowner, call us today. We have a vast database of many lenders and you are guaranteed of getting an option that matches your needs. If you are a foreigner residing in Australia, don’t worry because we will take care of your mortgage needs. We understand what you need to own a home here as a foreigner. Call us, and we will make it easy for home buyers to access loans.
Here is a little video recap!