3rd party mortgage brokers are generally regarded as an outstanding source of advice when looking for the right mortgage loan to finance or mortgage a property. pinsky mortgages pure volume
Independent mortgage loan brokers are not linked to advising clients to use particular lenders. Rather, they have access to all mortgage lenders and products available.
In addition to independent lenders, there are tied lenders. Linked brokers are similar to independent brokers however, rather than accessing all mortgages available on the market they only have access to products from a go with panel of lenders.
A few mortgage brokers, however, do not offer independent or tied advice and therefore offer an “information only” service.
Information only home loan brokers do not help their customers decide after which mortgage products best suited to their specific circumstances or financial situation.
Instead, information only brokerages will usually give you a large selection of mortgage products and will perform the administration functions required to process the application following your customers have chosen the merchandise by themselves.
While this may seem to be strange at first, the key advantage to the customer of such a service would be that the customers are normally not billed a fee. Customers can therefore benefit from using information only mortgage brokerages by saving money.
The primary disadvantage, however, is that the customer might not exactly choose the most appropriate mortgage loan product for their specific situation. This can cause the customer paying more in interest and costs over the life of the money than they would for a much more suited product.
Additionally, lenders sometimes have access to products which are not available on the open market. These are known as “exclusive deals” and each of these deals will normally only be accessible to the clients of a few selected mortgage brokerages.
Customers who use information only brokers may therefore miss out on such mortgage products.
In all, when deciding whether to use information only mortgage loan brokers, people must determine whether they need 3rd party advice, whether they wish to have access to the complete mortgage market, whether value is a factor, and whether they want to risk not being made aware of exclusive offers.
If cost is not important and individuals believe they can choose the right mortgages without independent advice, they may wish to use information only home loan brokers.