How is a mortgage broker different from a bank?

If you’re in the market for a new mortgage, you have two primary options. You can work with a bank or a mortgage broker. There are a few important differences between these sources that you should understand.

Banks typically only offer their own products

When you apply for a home loan through a bank, your options are limited to the suite of mortgages offered at that particular bank. This can be especially limiting if your bank doesn’t specialize in home lending. Mortgage brokers, however, work with a wide range of lenders, giving them access to more product solutions, so the loan is tailored specifically to your individual needs.

What is the benefit?

There are many reasons why you might benefit from a more custom lending solution, including:

• You need a jumbo mortgage
• You are self-employed
• You qualify for a subsidized loan program
• You want to limit closing costs
• You have a unique financial situation
• You have poor credit
• You have specific payoff goals
• You have a low down payment

A mortgage broker can carve out solutions to your problems in ways a bank often can’t.

Mortgage brokers can help you get approved and help you close faster

While the loan officer at your bank has some flexibility to help you navigate their approval process, the bottom line is that when you work with a bank, you either qualify for a loan or you don’t. With a mortgage broker, they’ll know which lenders are most likely to approve your loan given your specific circumstances. Banks also tend to take 60-90 days to close a loan, whereas mortgage brokers can move much faster to speed you through the process.

Mortgage brokers represent wholesale lenders

A mortgage broker can help you negotiate a better rate by shopping your loan to different wholesale lenders on your behalf, leveraging volume to get a bulk discount and pass the savings on to you. This flexibility gives mortgage brokers the power to present you with multiple loan options, often with a lower interest rate and lower fees than the loans being offered at your bank.

See what’s available before you sign

Some people prefer working with a local brick-and-mortar institution but you never know what else is out there unless you ask.

Wouldn’t you hate to leave money on the table if a better mortgage solution is available through a different lender? Talk to one of our mortgage brokers today or click HERE to quickly see if you qualify for a better rate.

Want to see if you qualify for a lower rate? Take our FREE online pre-approval, and find out in just 60 seconds how much you could be saving!

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