Can someone HELP ME PLEASE???
November 19 2012 Posted by Mary Poburan
As our world becomes more saturated with information, we are bombarded by so much that we often feel less informed than ever. The way we do business is changing, our world is changing. Banking used to be done with a handshake and now it is done on a phone app. This evolution is largely seen in the way that we obtain the financing for the largest purchase of our lives. Our Home. The channels which we have access to seem to be growing. At one time you asked to speak to the bank manager and he or she would help you through the process. Now we have branches, specialists, online access and Brokers. Who does what? Where should I go? Who do I trust? The key to that answer boils down to the key element in all cases. Relationship. Without relationship it is impossible to have a successful outcome in any scenario regardless of choice.
1) Branches: In a typical bank there are individuals that are responsible for taking mortgage applications. The trend has been to "train" individuals to use a system. An automated process that will then allow even a less seasoned individual to process an application with some degree of accuracy. The focus is now not on the client or the process but on the inputting of data. If the data deems you credit worthy you are approved if not, a decline will be handed out often with little explanation as to why. Perhaps this is not a fair representation as there are many wonderful experienced people who work at the bank, for 18 years I was one of them. But that pool of experience is getting shallower, so banks have to rely on mass system training processes as opposed to having access to staff with years of experience. Just understand that the process has evolved into a very automated one with little human input. Fitting in the box truly applies in this situation.
2) Mortgage Specialist: In the last decade, Banks have been growing a team of specialists to help build their mortgage market share. These individuals are usually( not always) more experienced and focus only on mortgage business. They are more involved in the process but are still limited to the constraints of the lender they work for. Their focus is on getting approval for you, but they are often at the mercy of the lending criteria of that institution. A specialist will often have access to better rates than the branch as there is a profitability factor worked into every mortgage. Since the bank is not paying a specialist a salary, they can afford to offer superior rates to offset this. Again there are great Mortgage specialists out there and as I was one for 4 years and I will attest to the fact that I did the best I could for my clients within the capacity available.
3) Mortgage Brokers: A Broker is an intermediary who works on behalf of the client to find the BEST suitable lender based on specific criteria. Often the rates are superior to what the branch or the specialist can obtain and more so ,the options available are broad. The average client no longer fits in a box. It is sometimes difficult to find a lending solution for all situations but a skilled broker can do so easily without risking the clients’ credit in the process. As a broker, I can now truly give my clients the best service, rate and opportunity that is available at the time of their applictaion. With lending guidelines changing frequently and the market being adjusted daily based on financial market spreads, being a broker allows me to have access to the most up to date products, interest rate specials and individualized underwriting.
Think of it like this. The branch is like shopping at a retail outlet. Decent selection with possibly some sales here and there. The mortgage Specialist is like shopping at an outlet center. The volumes are big so the pricing and selection is a bit better. Finally the Broker is a like a wholesaler. The middleman has been eliminated so pricing is lower as a result however you need a knowledgeable individual to source out the RIGHT product. All of these channels can be an appropriate way to obtain a mortgage but each cater to a different client type. There is not a truly good ,better or best option but ideally it comes down to relationship. Who is the person you are dealing with?Do they have control over the process? What level of knowledge and experience do they have? What access do they have to potential products and rates that you will require? If you have found someone in any of these categories that you know can provide all of these things then trust that you have found the answer.
