Brokers Vs Banks

Mortgage Brokers

Brokers have access to all home loan types. They help you find out what loan is best and what you qualify for. Then they shop around for you to find a lender who will give you the lowers rate and fees. These lenders offer lower rates than banks and they pay the mortgage broker so the borrower doesn’t have to. Brokers can be much more experienced then bank employees and much more available. Brokers are easily reached and do not operate under restrictive banking hours. Their availability and speed can be a valuable resource when buying a home. Their credibility with realtors is why most realtors recommend a mortgage brokerage rather than a bank. A pre-approval from a mortgage broker is more desirable than from a bank to most realtors. Brokers specialized in home loans and mortgages.

Banks

Banks or Credit Unions can be a good option for a few different loan types. Credit Unions can offer HELOCs at low rates with minimal fees, but you may have to be a member of the credit union. Auto-loans are a bank’s specialty, as well as commercial loans and business lines of credit. In the past, banks had lower rates on Jumbo mortgage loans, however recently mortgage brokers have become more competitive with these loans and often offer lower rates for Jumbo loans.

Bottom Line: Mortgage Brokers specialize in home loans and offer the most competitive rates when buying or refinancing a residential property.