What’s the difference between a mortgage broker and a bank lender?
A mortgage broker serves as an intermediary between you and the financial lender. They advocate on your behalf to make sure you get the best possible mortgage for your particular situation. A bank lender is simply, as the name suggests, a financial institution that can offer and underwrite home loans.
There are many differences between a mortgage broker vs. a bank lender. What follows are key aspects that make these organizations different, but the biggest difference is that a bank lender is a more limited mortgage experience while a broker is able to offer a wide variety of services, offerings, and options.
Mortgage Broker vs. Bank
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
Very strict lending standards
Fewer variety of loan products
Less mortgage expertise
Increased compliance requirements = more fees
Longer closing times
5 Things to Consider
- Consumers have the ability and option to work with either a mortgage broker or a direct lender. It is wise to compare rates from both of them to determine which is right for you.
- Mortgage brokers remove the need for you to connect with multiple different banks.
- Mortgage brokers offer a broad scope of mortgage options and services.
- Brokers sometimes only work with specific lenders and don’t always offer loans via all lenders.
- Mortgage brokers are well versed on the mortgage process where banks aren’t always.