MORTGAGE BROKERS VS. BANKS
There is a lot to be said about the benefits of working with a mortgage broker, but here’s how these two types of lenders differ from each other.
MORTGAGE BROKERS VS. BANKS
WHY BROKERS ARE BETTER
From finding the best interest rates, the lowest fees possible, to completing the application and closing a loan in an efficient and effective way – brokers are very well suited to handle most mortgage needs. Banks, being finanicial institutions that specialize in many types of lending and financial services, aren’t as acutely focused on the mortgage process.
Broker
May be able to find a lower rate
May be able to offer lower fees
Many loan types to choose from
Save you a lot of time
Prevent you from making a big mistake
Help secure funding for unique situations
Bank
Very strict lending standards
Fewer variety of loan products
Less mortgage expertise
Increased compliance requirements = more fees
Longer closing times
What is a mortgage broker?
A mortgage broker matches a borrower with a lender and a broker can help you find the best possible mortgage for your particular situation. Whether refinancing or buying a home, a broker is an expert in the mortgage process and is able to find a loan that is customized to you.
Pros of Mortgage Brokers
- More lending expertise/training
- More/better loan options
- Better loan guidance and advice
- More negotiation opportunities
- Fast loan closing
- Help prevent you from making a mortgage mistake
- Effective at handling or referring you if you have a tricky mortgage situation