Using a bond originator when applying for housing finance is widely accepted as a good idea. The sheer convenience of having a professional handle the nitty-gritty of the application process is usually enough to convince most buyers.
Here’s some insight into how bond originators work towards getting the best deal possible for you.
Driving competition for your application
If an application is submitted via an originator, the bank immediately knows that every other reputable financial institution is also seeing that application. They know that if they don’t put their best offer on the table, they could easily lose out to a more competitive institution. If, on the other hand, an application is submitted by an individual, then there is typically less pressure for banks to be as forthcoming.
Very few individuals have the time or energy to apply to every single bank – they tend to just pick a few that they think are the most likely contenders. Banks know this, so they are not as competitive, and the offers they present are often higher as a result.
Polishing your image
Bond originators are also highly skilled at presenting your financial history and current circumstances in the best possible light for each institution. Bond originators, build relationships with banks and learn a bit about what they like and what they look for in applicants. That enables them to tailor applications to appeal to each bank in the best possible way.
More than that, originators also advocate on behalf of their clients to ease concerns banks may have about the client’s past, present, or future prospects. They can explain your situation and argue on your behalf. That can be difficult to do as an individual since it’s often tough to get face-time with a bank representative.
Driving a hard bargain
By approaching all viable financial institutions and presenting your application in the best possible way, most clients get reasonable offers out the gate when using an originator. These negotiations are a delicate balancing act that plays on the competitive nature of financial institutions to drive the offered interest rates as low as possible.