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Bank vs. Mortgage Broker

My husband and I want to buy a larger home. Should we go to a bank for a loan or get a loan through a mortgage broker?
  • July 27 2009 - Gresham
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Answers (12)

Andy...You ain't seen nothing yet!
  • September 02 2009
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Profile picture for Oregon Mortgage Pro
Hi Wayne,

Thanks, I did search for newest however I focus on my State only- which comes up with limited results.

Also, most buyers with this question are still active since this is for a purchase and upgrade on dwelling- likely taking time to sell their existing home and finding a new home.

Additionally, some of the comments made I feel were unnecessary and they needed more direct and sound advice.

Thanks for the heads up on dates.
  • September 02 2009
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Andy

I know that you are new on here but this question is over a month old.

You should check that when you write or sort for newest vs latest comment.

Good luck on here.
  • September 02 2009
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Profile picture for Oregon Mortgage Pro
That is a great question and it comes down to who you are comfortable with and who is reputable and experienced (Loan officer at the bank vs. Mortgage Broker).

The retail vs. wholesale lending channels can be confusing for consumers.  My personal suggestion would be to compare estimates with a local broker and with your local bank for the same day.  Service will only be known by reputation and results others have had.  As we say, well done is better than well said (BF).

On our website under free reports there is report titled "Mortgage broker vs. bank that might help. 

Good luck on your new home search and purchase!
  • September 02 2009
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Joe,

Why does it matter what someone is making?

The only thing that should matter is how much the consumer is paying!

If I am making a little more but you are paying less...Will you choose to work with the LO that is making less but charging you more?  I am guessing the answer to that is NO. 

All bringing in what either side is making does is confuse the consumer.  A good loan officer bank or broker will work for X the consumer knowing what that X is shouldn't impact the decision to use them or not.

Name any other product or service you buy that the profit margin and not your cost determines where you buy the product or service from?
  • July 29 2009
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Brokers are required to provide full disclosure when it comes to pricing. Banks, Credit Unions and Mortgage Bankers are not. With a Broker you will notice they must disclose YSP "Yield Spread Premium". The other entities are not required to do so. You never know exactly how much a Bank, CU or MB is making off of your deal. With a Broker you know exactly how much they are making. 

Choose a few brokers and a few banks, all with high Zillow ratings, and request a good faith estimate. See how fast they respond, how much their costs differe (with the same rate) and then commit yourself to one lender and move forward.
  • July 29 2009
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Andrew is right on this one, but in addition to the spelling the difference is in disclosure requirements. Read the fine print and ask a lot of questions. Either way you are paying for a service whether retail or wholesale. I can bank or broker and I still lose deals to either side. Go with your gut. Best of luck!

  • July 29 2009
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What matters is the amount of experience along with how ethically the person you chose conduct their business. This can vary within the same organization. .... Happy funding, Rudi Hofmann
  • July 28 2009
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Michael....Will the process be better with an inexperienced banker?

I have no problem competing with any broker.  I have lost just as many deals to bank loan officers that are willing to work for less than I am.  It is either Naive or some kind of sales pitch to argue that the difference to the consumer is anything but spelling! 


The answer is a big NO!

From your Upfront Zillow Lender!
  • July 28 2009
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Brokers stay in business because they beat banks.

really?
  • July 27 2009
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Your best deal and your worst experience will come from a broker.

Brokers stay in business because they beat banks.  But if you get an inexperienced broker you may not have the best experience.

Find an experienced individual who listens to you.  Check the Mortgage Professor's web page.
  • July 27 2009
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You should get a loan based on the person you are dealing with not who they work with.  The difference between the two is a sales pitch that each other uses...when push comes to shove there is no difference.
  • July 27 2009
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