In days gone by you didn’t need a mortgage finder and the average person could find an affordable home loan on their own. However, the current economic climate is tough and the banks have tightened the purse strings, however the majority of people still need a mortgage to buy a property. Choosing the right home loan for you is not easy, nor is it a decision that should be taken lightly as choosing the wrong type of loan for your circumstances may end up costing you a lot of money.
Traditional mortgage finder – The mortgage broker
The traditional mortgage finder is the mortgage broker. A mortgage broker knows the market place, knows the current mortgage and home loan offers and is a trained professional so he should be more than qualified to help you choose the best funding solution for you and then go and get the loan for you. A mortgage broker will spend a lot of time working with you in securing a mortgage and this time has to be paid for, therefore you will have to use the services of a mortgage broker.
A mortgage broker will not just earn money from helping you, as he will receive commission from the mortgage lenders too. So for every home loan that is purchased the mortgage broker receives some money, call it a cut, from the mortgage lender.
There are many reports about dishonest mortgage brokers who select home loans for their clients based on the commission they will earn from the mortgage provider. This means the home loan that is recommended is not always going to be the best for you but the best for your mortgage broker. Since the mortgage broker should be working in the best interests of clients, i.e. you, this behavior is ethically and morally wrong but it does happen. When choosing a mortgage broker you need to be very careful and do your homework to ensure you use an honest one. Shop around and find a few
mortgage brokers to see who is the best for you. Never ever use a mortgage broker without seeing others in the first instance.
The new mortgage finder on the block – The Internet
The internet is a mortgage finder that is available to all, and the best thing is it is not going to cost you a penny. That’s right, nada. All mortgage lenders have their own website detailing the latest mortgage deals, but whether you qualify for them is another matter altogether.
To visit all the mortgage lender websites, note down the current offers and what the key features are and then tabulate the information for comparison purposes would take a lot of hard work and
effort, not to mention time. Fortunately, there is no need to go through all of this as there are many websites that do the hard work for you.
There are many price comparison websites that have the details of all the latest home loan and mortgage details. All you need to do is go on one of the many price comparison websites and tap in your requirements. After a few minutes you will be presented with a list of best matches, which is nicely organized to show you the key features of each mortgage offer. It is possible to reduce the list even further to make the comparison that much easier.
Using a price comparison website offers many advantages over using a mortgage broker. Firstly it is free, which has already been mentioned.
The price comparison websites are impartial and cover all the major mortgage lenders. A mortgage broker is only going to deal with a handful of mortgage lenders, but the price comparison website will deal with lots of them, giving you more choice.
The price comparison websites will not try and persuade you to take a certain mortgage product in order to get the highest commission possible. The price comparison websites simply gives you all the information and then allows you to make up your own mind which way you want to go.
The price comparison websites are available twenty four hours a day seven days a week, unlike a mortgage broker. This means you can search for a mortgage whenever suits you. So it doesn’t matter whether you are a shift worker, a night worker, a full time mother or work a standard
nine to five, you can always compare different mortgage products.
The major disadvantage of price comparison websites is that you do not get a personal service like you do when using a mortgage broker, but does this really matter? After all the objective of most
people is to reduce costs as far asp possible and get value for money, and a price comparison website provides this.
So, if you are looking for a mortgage finder there are basically two options. The first is to use the services of a mortgage broker. Being a real person, you can ask a broker questions
and you will get a direct answer. A mortgage broker is going to cost you, which is more expense when applying for a home loan.
The second type of mortgage finder is the internet and using one, or a few, of the many different comparison websites available. This mortgage finder is much cheaper than a mortgage broker, well it is effectively free, however you don’t get the one to one service or your questions answered.
What is the best mortgage finder? The answer to this depends entirely on the sort of person you are, your attitudes towards the internet, how clued up you are about mortgages and whether you are willing to pay to use the services of a mortgage broker amongst many other things.