Which is best, using a mortgage broker or a mortgage bank for home financing?
Question by ace: Which is best, using a mortgage broker or a mortgage bank for home financing?
I am looking for good service while looking for lowest costs and interest rates.
Best answer:
Answer by nature4me
Mortgage Broker hands down,they have access to dozens of lenders & do most of the work & running around for you
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BANK, best, Broker, Financing, Home, mortgage, using
Mortgage brokers will cost more (they act as a middle man and take some $ $ $ themselves on each deal). They can be good if you are having a hard time getting a loan as they can sometimes find a lender for marginal loans, but if you can do the deal with a bank directly it will be cheaper. I like using smaller local banks that have branches in the area where I’m buying. THey are smaller and can usually do what they say, while still being very competitive on their rates. I believe that with large banks you can more often have last minute problems from some underwriter who may be 5 states removed from the house you are buying (but there are some excellent larger banks out there too). I’d definitely avoid any bank that seems to be having financial problems (as they are probably having personnel problems too ie the good personnel may be going elsewhere)
Use a mortgage bank and its not even a close decision.
Sounds like looking for a polar bear in Africa…..
Bank – If you go directly to the bank it’s like going to McDonald’s – you get what they have on their menu at their prices.
Broker – If you work with a broker it’s like going to an all you can eat buffet – you have more choices.
You also need to know that if you go to a bank you are dealing with a loan officer that has quotas to hit in order to make their pay scale and keep their job.
The first corner to get cut is always customer service in a volume atmosphere. It is also a common misconception that brokers cost more.
When you go to a bank you are dealing with a retail establishment but when you deal with a broker you are dealing on the wholesale side.