A good debate has opened up as a result of this question asked in Zillow Advice:
Should I go with Bank or Mortgage Broker?
Agents like Andrew Walter offer reasons to go with a direct lender while lenders such as Gregorio Denny offer the argument that superior service is important.
What do you think?
P.S. A recent post in Mortgages Unzipped reviewed the different types of lenders.
Get a broker! A bank is larger and does not really care about you, they just care about your money and its another blank face mindlessly slaving away for a huge company. Find a good broker and they will work for you, and do what is best for you where the bank will not. Of course, that all depends on the person you choose. I know that I would go with a broker anyday.
-Tyler
Your local community bank should always be your first stop when shopping for a mortgage! Why not go with the bank that is invested in the new community you are buying in. They typically will be the lead sponsors of the local non-profits ,
schools and the arts, making our communities a better place to live for all of us. We are not “another blank face”, but the people most likely to be your new neighbor. In my 30 years of banking, I take great pride in helping our customers achieve their goals of homeownership!
Not a black or white question. You should check out all options and make your decision based on what’s most important to you.
I’m a broker. I can beat my local community bank on straight up loans 95% of the time. However, with unique properties (like a condo located in a retail area) or with 2nd mortgages, local community banks are the best.
Funny, I will often refer my prospects to a local community bank when it’s in the customers best interest. Banks don’t reciprocate. That should say it all.
While the broker channel is suffering right now due to a lack of programs, funding, & support. The broker channel is more efficient than the ‘on-every-corner’ bank and WILL make a comeback. Brokers keep banks in check from overcharging consumers. Support your local mortgage broker.
Full disclosure, I work for a “large bank”.
I would suggest that as others said above that you shop around and compare your options. Make sure you look at the total picture including rate and fees. Request a GFE (Good Faith Estimate) to make sure you understand all the fees and points. It takes some effort on your part but can save you money in the end.
If you are unsure how to compare your options ask someone you trust that understands. If a deal seems too good to be true ask more questions as it probably is.
There are good mortgage brokers out there, there are bad mortgage brokers out there. There are good banks out there and there are ones that are not so good. In the end do your homework and you will get a fair deal.
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