Broker vs. Bank
There is a lot of confusion in the marketplace regarding whether a borrower is better served going to a mortgage broker or going to their bank. The answer is simple…it depends.
As a mortgage broker, we get to “shop” hundreds of banks to find the bank with the lowest rates and fees. You see, every morning banks fax us wholesale rate sheets enticing us to send them business. Some days, a lender out of New York may be hungry and looking for business, the next day, a bank out of Kansas may be aggressively seeking loans. On a $300,000 loan, the difference between the BEST rate and the others can be over $130,000 over the course of a loan (6% vs. 7% on $300K).
A broker also has access to hundreds of programs. Whereby a bank only has access to THEIR programs.
Some banks are even HUNGRY enough to pay ALL the closing costs on your loan… And those, my friends, are my favorite!!
So, the question you need to ask yourself is this, “Do I know which bank is currently offering the lowest rate in the Country?” If the answer is no, call a mortgage broker or two. Steve Walsh
The Mortgage Maniac