Mortgage Brokers vs Banks
 VS 
Here are two questions that haunt home buyers: Should I use a Mortgage Broker or go with a Bank? And what's the difference anyway?
Choosing a Mortgage Company or a Bank can be quite confusing and stressful. Understanding the difference between your local Bank versus (a) Mortgage Broker(s) could mean the savings of thousands of dollars. Your local Bank has certain guidelines and criteria it must follow. These restrictions often limit the loan products which are available to you. It’s essential to ask your bank which type of credit borrowers they specialize in, also known as Prime and Sub-Prime Borrowers. Knowing this can give you a better understanding of the lending institution you're dealing with.
Mortgage Broker(s) on the other hand are often smaller companies that have an abundance of resources when it comes to getting you the money you need. Mortgage Brokers often are NOT restricted to one lender’s guidelines. It is a well known fact that the majority of people find better deals with Mortgage Broker(s). Statistic prove that over 65 percent of home loans are originated through Mortgage Broker(s).
Therefore, whether it be foreclosure bailout, bad credit refinance, no money down purchase etc., (a) Mortgage Broker(s) has a better chance of getting you the loan. Like a bank, (a) Mortgage Broker(s) will charge an origination fee to obtain you a loan. However, since (a) Mortgage Broker(s) has a much larger network of mortgage lenders they can often find you the best deal.
|
