Author Box
Articles Categories
All Categories
Articles Resources

Mortgage Refinancing - Is It Better to Refinance With a Broker Or the Direct Lender?

April 13, 2012 | Comments: 0 | Views: 164

The main difference between a mortgage broker and a single lender (bank) is that the mortgage broker is a free agent that deals with mortgage products of many different types of lenders but is not aligned with any particular one.

Advantages of using a broker:

1.Most brokers do not charge the customer /borrower- they only charge the bank that they end up selecting for the customer's new loan. This means that all the running around and form filling for a finance application gets done for you for free. Some people do not understand why it is a free service. The banks are trying to cut costs particularly in the cost of employment and one of their methods to do this is to outsource the job of selling their loan products to independent agents. They will pay the agent a commission if the agent happens to get a borrower to select on of their loan products. Payment of the commission is still less for the bank than paying a full time staff wages, tax, super, plus holiday and sick leave, maternity leave, workers comp etc.

2.As brokers are free agents and not aligned with any lender, they are usually self employed consultants who can set their own hours and make arrangements to meet customers. As a result they will often accommodate the customer's preferred contact place and time.

3.If you use a broker for your finance enquires they will be able to tell you what you need to do to qualify for finance so you can make sure you have all the requirements before actually making an application for finance and therefore avoid an unsuccessful application. If you make an unsuccessful application on your own and then try with another bank, especially if there have been any problems with your credit history, you may set yourself up for another rejection.

4.A finance broker can keep all your finance supporting documents and information on file so whenever you need to apply for finance again or change banks, you don't need to go through the same process again eg: proving identity, showing all previous tax returns and sources of income and filling out an assets and liabilities and income sheet again.

5. When you want to get an answer quickly about how your finance application is progressing, a finance broker is on call for you. They are relying on the loan going through before they can get paid by the lender, so it is in their interests to make sure that you are successful with your finance application.

6.Finance brokers will often work one on one closely with you and your other professionals such as accountants and lawyers and therefore complement your team of professional support and avoid you having to repeat yourself when it comes to agreed information exchange or sharing. This makes life easier when you are buying a property, refinancing debts or financing a court case.

For more information about finance see: Or to have a broker contact you to see if they can help your situation please email with the words "finance enquiry" in the subject heading. Please leave a contact number as well as your full name when emailing.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Mortgage Refinancing


Mortgage Broker


Finance Enquires

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Here is some of the common home loan terms that one comes across while applying for a home loan. What is an E.M.I?

By: Subhrajeet Talukdarl Finance > Home Equity Loansl May 31, 2012 lViews: 184

Are you confused about investment home loans and how to find the best option for you? This article gives you 7 hot tips on how to find the best option for your personal situation so you can save

By: Julian Thorntonl Finance > Home Equity Loansl May 31, 2012 lViews: 172

Purchasing a home for you and your family doesn't have to be difficult. There are easy ways to go about it. It is wise though, to arm yourself with knowledge before you proceed to do so.

By: Sabrina A Becnell Finance > Home Equity Loansl May 26, 2012 lViews: 164

A home equity loan allows a homeowner to use the equity they have built up over several years living in their home as collateral for a second mortgage. Homeowners can essentially inject liquidity

By: Rocky C Rhodesl Finance > Home Equity Loansl May 25, 2012 lViews: 187

Under the Islamic law called sharia, all Muslims are clearly prohibited from enjoying money from riba or surplus value without counterpart. In simple words, one is not allowed to pay or receive money

By: Ilham Syahl Finance > Home Equity Loansl May 24, 2012 lViews: 177

We explore some of the variations in the biggest home loan market of all, the United States of America, and how these can impact on the overseas investor. I'll explore, the variation in lender's

By: Stephen John Brownl Finance > Home Equity Loansl May 23, 2012 lViews: 188

There are 2 main aspects to protecting your assets after separating from your spouse. Firstly, there are actions to take to preserve property, to ensure that it is not dissipated, de valued or

By: Maria A Rigolil Legal > Family Law and Divorcel April 11, 2012 lViews: 168

Many family law clients come to their lawyers with incorrect assumptions about their rights, and their ex- spouse's rights after separation. Here are some of the most common myths, questions and

By: Maria A Rigolil Legall February 25, 2012 lViews: 142

In Victoria, and most states of Australia, the role of Executor of a Will is to: 1. Organize or assist with the funeral arrangements for the deceased. 2. Ascertain whether the deceased left a Will

By: Maria A Rigolil Legal > Elder Lawl January 31, 2012 lViews: 153

Alice aged 48 and her de facto partner Bill aged 51 live together. Bill has a serious car accident and is in intensive care and doctors advise that he may take some time to recover and appears to

By: Maria A Rigolil Legal > Living Willl January 23, 2012 lViews: 172

Discuss this Article

comments powered by Disqus