Looking for a mortgage can be an exciting time; after all it’s part of the overall property buying process. It can also be a stressful time. Mortgages are not always that easy to understand and it’s not always easy to get a mortgage if your credit rating is not too good. If you are looking for a mortgage one of the first decisions you need to make is whether to go straight to the bank or to approach a mortgage broker.

Often, the most popular choice is to approach a bank direct. Traditionally, this is what people have done and many people just follow on with what is the most common path to take. That being said, things are starting to change and many people are finding mortgage brokers like Ace capital to be very helpful when trying to negotiate the mortgage minefield.

What are your options?

There are good and bad points about opting to approach banks yourself when you are looking for a home loan, just like there are good and bad points about using a mortgage broker. Sometimes, if the loan situation is complicated or if you do not have good credit it can be virtually impossible to negotiate a mortgage deal directly with the bank. This is why, although many people approach a bank first, because they already have an account there, they may eventually decide that a mortgage broker is a better option. Using a mortgage broker is not necessarily more expensive either; it can actually work out to me the more cost effective choice on some occasions.

Pros and cons of using a bank

There are many pros and cons to approaching a bank directly regarding a home loan.

Some of the pros are:

• *  You may already have a good relationship with the bank.

• *  You may already know the bank worker who will handle your mortgage.

• *  Banks have a reputation for being trustworthy and reliable.

• *  You can make automatic payments by having your bank account linked with your mortgage.

• *  You may be able to get a lower interest rate.

Some of the cons are:

• *  They can be very conservative with their lending.

• *  The application process can be long and tedious.

• *  They can make false promises.

• *  Not all banking staff that deal with mortgages have great knowledge.

• *  Commission does not have to be disclosed so you may not know if you are overcharged.

Pros and cons of using a mortgage broker

As with approaching a bank directly, there are several pros and cons when it comes to using a mortgage broker.

Some of the pros are:

• *  All of the work is done for you.

• *  They compare a whole range of wholesale mortgage rates.

• *  These wholesale rates are sometimes lower than the retail rates you can get from a bank.

• *  They provide you with more options than you would get from a single bank.

• *  They can help finance even complicated and difficult loan deals.

• *  They tend not to be as bureaucratic.

Some of the cons are:

• *  You have to be careful about what you are being charged for.

• *  They can make false promises just to get your custom.

• *  They may not have a high level of experience in the industry.

The truth is that not all banks are good and neither are all brokers. Whichever you choose you need to do your research to make sure they are reputable. Overall, unless you have a very good relationship with a specific bank, working with a mortgage broker can be a good idea. They are often more approachable than banks and they can be a great support in guiding you through the loan process, especially if your loan application is more complicated than others.