Mortgage Brokers vs. Banks: Make Your Choice

There are mortgage brokers, who work as middlemen between banks/mortgage lenders and borrowers on the wholesale end to secure financing for homeowners. And there are banks and lenders, that work directly with the homeowner to provide financing on the retail level. There are pros and cons to both, and sometimes you will have little choice between the tw

o if you have poor credit or a tricky loan scenario.
The majority of homeowners turn to banks when it comes time to get a mortgage. They are the most obvious choice, mainly because home loan services are usually offered at the customer’s primary banking institution.

Pros Of Working Directly With A Bank:

i. Build off existing relationship (discounts and customer service)
ii. Better interest rates in some cases
iii. Ability to add mortgage to existing banking profile and make automatic payments from existing accounts


Pros Of Working With A Mortgage Broker:

i. They do the legwork for you, comparing wholesale mortgage rates from a large number of banks and lenders
ii. Wholesale interest rates can be lower than retail (bank branch) interest rates
iii. Brokers must disclose the yield-spread premium
iv. Can finance tricky deals
v. Are typically easier to get in contact with, less bureaucratic