What’s the difference between a mortgage broker and a bank lender?

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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

Broker

Z

May be able to find a lower rate

Z

May be able to offer lower fees

Z

Many loan types to choose from

Z

Save you a lot of time

Z

Prevent you from making a big mistake

Z

Help secure funding for unique situations

Bank

Q

Very strict lending standards

Q

Fewer variety of loan products

Q

Less mortgage expertise

Q

Increased compliance requirements = more fees

Q

Longer closing times

5 Things to Consider

  1. 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.
  2. Mortgage brokers remove the need for you to connect with multiple different banks.
  3. Mortgage brokers offer a broad scope of mortgage options and services.
  4. Brokers sometimes only work with specific lenders and don’t always offer loans via all lenders.
  5. Mortgage brokers are well versed on the mortgage process where banks aren’t always.