In fact, getting a mortgage from your current bank will require as much time and documentation as getting one from another lender. And your current bank won't necessarily offer you the best interest rate. Of course, there's nothing necessarily wrong with getting a mortgage at your regular bank. It could turn out that they offer the best conditions for someone with your credit and financial profile depending on the type of mortgage you are looking for. But the odds are against it: there's so much variety in the rates and conditions offered by different mortgage lenders that it would take a real stroke of luck for your regular bank to become the one with the best deal for you.
The advice provided by mortgage brokers is regulated by the Financial Conduct Authority (FCA), meaning you have more legal recourse if you suffer a significant loss due to poor advice. Sometimes, the lender pays the mortgage broker (since, after all, it's the broker who does business with the lender). Talking to a broker can help you better understand what you're hiring for and how to get the most out of your mortgage. Specialty mortgage lenders tend to focus exclusively on mortgage lending and often serve a specific type of borrower. When buying a mortgage, it's best to start by looking for a variety of lenders: check with large banks, community banks, credit unions, non-bank lenders and mortgage brokers to see what type of terms they offer.
Researching and finding a mortgage lender on your own may equal some of the benefits of working with a mortgage broker, but a mortgage broker may have access to more resources. If you're fairly confident in your mortgage knowledge and like to be in full control of every step of the process, a mortgage broker may not be the best option for you. If you're looking for a type of mortgage that's less common, working with a broker can provide you with direct access to relevant lenders. A recent report from the Consumer Financial Protection Bureau revealed that nearly half of the mortgage borrowers surveyed seriously considered hiring a single lender before applying for a mortgage. Mortgage brokers must disclose their fees in advance, so it's something you can ask when looking for a broker.
Using a mortgage broker to compare market offers can save you a lot of time compared to doing it yourself. Because mortgage brokers deal with the different criteria of lenders on a daily basis, they know which lenders to avoid and can dissuade you from applying if they are likely to reject you. This is something you can do independently, but turning to a mortgage broker to compare offers for you can be easier, faster and more comprehensive. You may be able to save yourself a lot of the headaches associated with the loan process if you work with a mortgage broker, but you'll still need to do some research to find a mortgage broker right from the start.
It can be time-consuming and seem like a lot of work, but when you consider the amount of money you're going to need, thoroughly researching mortgage options is time well spent. While the terms of the mortgage should remain the same even after it's sold, it can be stressful to see your mortgage change lender multiple times.
