In certain countries, people will just go to the bank to get their mortgage approved. This is because they don't know that they are able to go elsewhere and get better advice.
When people just assume that they can only go to a bank, they are losing money and they are losing out on getting better advice on which mortgage that will be better for them.
Therefore, homebuyers should always be proactive with their mortgage and they should always do their research rather than just signing up with the bank because it is easy.
Why is it wrong to go to a bank?
Well, it is not necessarily bad to go to a bank, you can if you want to and you might be able to get an affordable mortgage and you will be none the wiser.
It is just that the bank is trying to sell you a mortgage from them. There will be no price comparison and they will just tell you what you will get by going with them.
However, if you go to a mortgage professional, they have not made allegiances with one company over another. They will compare the market, so to speak, and try and match you up with a mortgage provider that suits your requirements and is cheap if that is what you are looking for.
It doesn't benefit them if they sell more of one product over another, so they won't try and sell you something because they need to get the commission on one item over another.
If they work off commission, they will get the same amount of commission no matter which product they sell to you. Therefore, you will get a more reliable opinion from a mortgage professional because they don't have a preference themselves.
If you went to a bank, they might be under pressure to sell you a certain type of mortgage, so they might bend the truth a little bit to make you more likely to go with something that they prefer.
Who needs a new mortgage?
People can need a new mortgage for many different reasons other than buy a new house. They can get a mortgage if they want to free up some equity in their house. They will only be able to do this if they are in positive equity on the price of their house.
When people free equity, they are mainly doing this so that they can invest or something else. Sometimes, they might just want to use the money on a luxury now, instead of waiting for a few years when they sell the house.
It might be that people need a new mortgage because they are selling their house and they want to move on quickly. If this is the case, people might go to the mortgage professional before they have even started looking for a new place or put their own house on the market. They will just want to see if they can be pre-approved for a mortgage so they can see if they can get a more expensive house.
Decisions
If doesn't really matter why you want your mortgage as long as you make an educated decision on which mortgage you want. This simply won't happen if you settle for a bank.
Therefore, it is a wiser decision to go with a mortgage professional. They will make sure that you know everything and that you make a decision based on the facts available to you at the time. They will also make sure that you are not ripped off.
Article Source: http://EzineArticles.com/8420705
