Guest post by Andy Gilder.

Home loans are like a box of chocolates, you never know what you are going to get.

Granted, my Forrest Gump analogy is an over simplification of a complex issue, but you need to understand one thing – not all banks are the same when it comes to home loans.

The lending criteria and amounts that the banks will actually lend you are fluctuating so fast that it is difficult to keep track of where and when to find the best deal. Ideally, you should approach every possible lender when looking for a home loan provider, but because this is seldom possible in these busy times, my advice is to seek the help of a qualified and experience mortgage broker. Some brokers are paid commission by the banks, so it won’t cost you anything to utilise their services and because they have knowledge and experience in the industry they will help you plough through the hideous amounts of paperwork that you will need to fill in when applying for a first time home loan or a remortgage.

Ian Wason, MD of independent mortgage brokers www.Bondbusters.co.za says “It’s never been more important for consumers to use a broker. By approaching all the lenders on your behalf, a broker will know which lender’s criteria you will meet and, as a result, where you need to apply to get the best deal”.

As a broker, Wason confirms that each bank has a different set of lending criteria and that he frequently sees cases whereby a decline from one lender won’t necessarily result in a decline elsewhere. “One of our recent clients was rejected from a further loan from their own lender, but offered a higher mortgage amount by another one”.

It’s not as much fun as window shopping, but it clearly pays to shop around for a mortgage.

Andy Gilder represents www.justmoney.co.za, South Africa’s online guide to money. As Justmoney’s editorial and content producer, Andy spends all day addressing the financial concerns of South Africans and uses the www.justmoney.co.za tools and guides to find consumers the best deals available. Check out their bank charges comparison tool to see if you’ve got the best bank account available.