Back to Results

Tools

Partner Tools


Should I go with Bank or Mortgage Broker?

Profile picture for zzhh
close Profile picture for zzhh

zzhh

Contributions: 19

View full profile

Hi,

I am now trying to buy REO Home.  Some says better to go with reputable landers (such as famous banks) to get a deal or contract. What about going with Mortgage brokers?  How the REO seller look at the buyer side? Will there be delay in contract?  Can I ask pre-approval letters from both from bank and broker?

Thanks
zzhh
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

June 26 - Stockton
RSS

Answers (15)

Profile picture for Caveat Emptor
close Profile picture for Caveat Emptor

NTETS, "Caveat Emptor"

Contributions: 5584
Zillow All-Star

Since January 2009

View full profile

stay away from "famous" banks like BOA, chase, ect... but feel free to go with other banks/ direct lenders. www.bankrate.com... be prepared to make several phonecalls ^_)^
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 10
Profile picture for justinmchood
close Profile picture for justinmchood

Justin McHood, "justinmchood"

Mortgage Lender

Lender rating

View ratings and reviews

Contributions: 11

View full profile

Great question!

My first thought would be that lenders don't matter - loan officers do.

And there are three types of loan officers (at least!).

But a couple of other important related thoughts would be make sure you know how your loan officer is paid and how much your loan officer is charging you.

Justin
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 10
Profile picture for LoanLady Nationwide
close Profile picture for LoanLady Nationwide

Roxy Redenbaugh, "LoanLady Nationwide"

Mortgage Lender

Lender rating

5.0/5.0

View ratings and reviews

Contributions: 72

View full profile

You should really click on this link! Some of these answers to your question are from well meaning but misinformed people. Nate has done an excellent job of explaining the difference.

SEE WHAT ZILLOW'S NATE MOCH HAS TO SAY ABOUT THIS SUBJECT!
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 10
Profile picture for realtz.com
close Profile picture for realtz.com

Tristan Celayeta, "realtz.com"

Real Estate Agent

View my 1 listings
Contributions: 214
Zillow All-Star

Since July 2009

View full profile

Rules are for fools! And you're being advanced a lot of generalizations drawn from personal experience or at times from real estate dilettantes.
Anthony Robinson is dead on.
Spener Rascoff has provided a great link to more information than you want, not more than you need.
Regardless of which you choose pay attention to the particular people. There are great brokers and great loan officers, there are abysmal both. In fact you will find differences with different people in the same organization.


  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 10
Profile picture for flying toonces
close Profile picture for flying toonces

flying toonces

Contributions: 4

View full profile

I am in escrow on a home right now and I worked with a broker I found on Zillow mortgage marketplace. I chose him because of reviews, location, and fees, and without a doubt he has lived up to my expectations.
I've noticed that depending on your broker, you will pay on average 1/2 to 1 point less in total closing costs, and in my case I received excellent personal service. If I had gone with my credit union instead, I would have paid more and my customer service would have been good, but not as comparable to what I received.
I think it's a personal choice, and for a first time homebuyer like me, it was nice to have an advocate on my side.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 10
Profile picture for Space_Truss
close Profile picture for Space_Truss

Space_Truss

Contributions: 177

View full profile

Go with a bank, or a direct lender. You know what you will get.
If you have problem with a bank, you can find someone to complain.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 09
Profile picture for spencer
close Profile picture for spencer

Spencer Rascoff, "spencer"

Seattle, WA

Contributions: 1295
Zillow All-Star

Since December 2008

View full profile

Here's a great explanation about what's the difference between a mortgage broker and banker.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 09
Profile picture for Diversified Mortgage
close Profile picture for Diversified Mortgage

Anthony Robinson, "Diversified Mortgage"

Mortgage Lender

Lender rating

View ratings and reviews

Contributions: 2

View full profile

I've worked as a loan officer at one of the largest mortgage banks in the country and I've worked as independent mortgage broker.  Your question really boils down to your experience level, if you're new to buying and need more personalized service go with a broker, we have the ability and incentive to be at your beck and call.  If you know exactly what you want and know your qualification status go with a bank they can probably give you a slightly better deal, but with the bank you are just a number and if things get "hairy" don't expect a shoulder to cry on. 
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

July 09
Profile picture for Palmdale Mortgage
close Profile picture for Palmdale Mortgage

Johnny James, "Palmdale Mortgage"

Real Estate Agent

View my 2 listings
Contributions: 219
Zillow All-Star

Since June 2009

View full profile

I am not surprised to see the broker haters rise to the surface but what happened to the good neighbor policy. Can you really say in your honest opinion that I broker can not be competitive as far as pricing and closing the deal? Or does the fact that you are not a broker just cause you to lash out at brokers and place blame on them? It was the same lenders that made billions of dollars that you will gladly send customers to that caused the problems. Brokers do not underwrite or approve loans they originate them.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

June 27
Profile picture for CNN Mortgage
close Profile picture for CNN Mortgage

Julie Messina, "CNN Mortgage"

Mortgage Lender

Lender rating

View ratings and reviews

Contributions: 71

View full profile

You wanted to know if it was easier to buy a REO property working with Bank or Broker financing. Foreclosure inventory (or lack of) has created an unusually competitive enviornment for lower priced homes in some markets.  Today I talked to a realtor who called it a "feeding frenzy".  You know, you can have the best Wells Fargo loan approval in the world, and may still be beating your head against the wall three months from now when five or six of your offers have not been accepted because you did not come in as the "highest and best".  Most homes are listed intentionally low to create this frenzy where the seller throws out all offers except the one he wants.  It is very hard on the buyers and unfortuntely has nothing to do with where your loan approval is coming from. 

If I were you, I would interview a couple of banks and a couple of mortgage bankers all on the same day.  Get a GFE from all of them "based on the day's opening rate sheet".  This will give you an idea of where you can get a fair price.  or, If you are working with a realtor he/she will know who to use that can get the job done. Some of the Zillow rate quotes tend to be a too good - but talk to a mortgage banker on this site too, 've seed a couple that have high ratings from satisfied customers.  Keep in mind It's possible the REO bank may require you obtain approval with their own origination arm to make sure you qualify. In the end you can use whomever you want as long as they get docs to the table on time.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

1 Yes

June 27
Profile picture for CORONA NICK
close Profile picture for CORONA NICK

CORONA NICK

Contributions: 2134
Zillow All-Star

Since October 2009

View full profile

I've bought and refied more than once, I would not use a broker... they got a bad rap right now...
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

June 26
Profile picture for WeFixRates.Com
close Profile picture for WeFixRates.Com

Gregorio Denny, "WeFixRates.Com"

Mortgage Lender

Lender rating

5.0/5.0

View ratings and reviews

Contributions: 3527
Zillow All-Star

Since January 2009

View full profile

"- broker may receive incentives from lenders, so s/he may not advice the best deal for you
- brokers work with smaller lenders, that may be currently saturated with refinancing applications. So expect longer processing delays
- smaller lenders may have smaller processing fees"

Concerned_Buyer, this is utter nonsense!

zzhh, you have received 3 ridiculous answers and I urge you to explore both options (Broker/Bank) and ultimately choose someone who you feel comfortable working with. Pick not only the best rate and fees, but the best service. Choosing a company because of it's name makes little sense since stupid people work for large banks as well as small ones. All it takes is a bad loan officer from any source to destroy your loan. Take my advice, shop both channels and pick a person to do your loan, not a company.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

1 Yes

June 26
Profile picture for RealEstateByAndrew
close Profile picture for RealEstateByAndrew

Andrew Walter, "RealEstateByAndrew"

Real Estate Agent

View my 5 listings
Contributions: 38

View full profile

In this market you should work with a direct lender rather than a broker.  Most lenders have stricter underwriting for brokered loans than in-house since the brokered loans are where the majority of the losses (foreclsosures) have come from.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

June 26
Profile picture for jkonstant
close Profile picture for jkonstant

jkonstant

Real Estate Agent

View my 1 listings
Contributions: 1462
Zillow All-Star

Since May 2009

View full profile

Find one with an in house underwriter. Many large institutions send off your information to somebody in another state. Having everything under one roof can expedite things, especially if you want a quick close. Wells Fargo and Countrywide require you be pre-approved by them. You do not have to actually use them, but they will qualify you and then hope you will use them.
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

June 26
Profile picture for Concerned_Buyer
close Profile picture for Concerned_Buyer

Concerned_Buyer

Contributions: 5

View full profile

There are many pros and cons for using a broker rather than a bank. Just to throw some ideas in:
- broker may receive incentives from lenders, so s/he may not advice the best deal for you
- brokers work with smaller lenders, that may be currently saturated with refinancing applications. So expect longer processing delays
- smaller lenders may have smaller processing fees
  Flag content
Close
Report a Problem

If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.

Close
Content Flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0 Yes

June 26
 

Have a question? Ask it here.

What's this?
Close

By starting a discussion, you can expect more of an interactive, back-and-forth experience where the conversation can go in many different directions.

Or start a discussion

 
Most Active Stockton Real Estate Agents
Subscribe via RSS
  1. Profile picture for Frank Silveria III Frank Silveria III
    29 listings
    Local Expert
  2. Profile picture for Stockton Realtor Pat Holkesvig
    38 listings
    Local Expert
  3. Profile picture for RandyThomas Randy Thomas
    15 listings
    180 contributions
  4. Profile picture for craig gilmore craig gilmore
    9 listings
    92 contributions
  5. Profile picture for dadamsgr Greg Adams
    7 listings
    36 contributions

See more Stockton real estate agents

Related Questions
Profile picture for zzhh
Question 8000 Tax Credit and form 1040X and 5405
  • Latest answer by zzhh
  • September 19
Profile picture for zzhh
Question About Vesting on Title
  • Asked by zzhh
  • August 05
Profile picture for Joe Nernberg
Question What things can I ask back from seller?
  • Latest answer by Joe Nernberg
  • July 23
Profile picture for Mary Papageorge
Question My wife as a co-buyer
  • Latest answer by Mary Papageorge
  • July 13
Profile picture for Bob Lowery
Question Rate Lock
  • Latest answer by Bob Lowery
  • July 11
Related Articles about Buying Process
Guide Real Estate Buyer's Closing Costs
Guide List of Closing Costs and Fees
Guide You've Opened Escrow
Guide Home Buying One Step at a Time
Guide A Buyer's Guide to Making the Right Choice
Current Last Week
Need a Mortgage?

Zillow Mortgage Marketplace

  • Competitive rates
  • Accurate, custom quotes
  • Thousands of lenders

... and, it's free and anonymous

Get instant mortgage quotes
Estimated purchase price Current mortgage balance Desired loan amount
98104

Learn about Zillow Mortgage Marketplace

Zillow Poll:
Suggested by Edward Thornburg
Name the single costs factor that increases the most for home purchases?
Next poll
Suggest a poll
Be A Good Neighbor

Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy

© 2006-2008 Zillow.com, All Rights Reserved

pageName