Are banks better than mortgage brokers for a home loan?

mikeandconnie

LoanSafe Member
Jun 14, 2019
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I am a bit confused on this. Mortgage brokers seem to be worse from where I am standing in terms of home loans. The bank I recently switched to does offer home loans and I am considering working with them to get a loan but I want to make sure it is better to go through a bank vs going through an actual mortgage broker. I have very little knowledge on all the finer details so I do not want to make the wrong decision for myself.
 

Totalfixation

LoanSafe Member
Jun 22, 2019
5
0
1
I feel like mortgage brokers are cheaper, once you get a rate and the loan approved. You're likely never having to deal with that company/person again. A bank, imo, are like retail chain stores. they have higher overhead and will need to make it up somehow.
 

RyanJP

LoanSafe Member
Mar 31, 2010
421
6
18
It depends on how much work YOU are willing to do to chase down the best deal.

If you are a first time home buyer and are looking for a normal mortgage (not a condo, not a jumbo, etc), chances are going directly through a credit union or LOCAL bank will get you a better deal. This is because some banks and credit unions have special programs for first time home buyers that I noticed were never offered to me (or people I know) by brokers when I was looking.

If you aren't a first time home buyer and/or don't want to do the legwork yourself, then a broker is probably the way to go.

If you DO choose to do it yourself, make sure you contact SEVERAL (3 at a minimum, preferably more) lending institutions and talk to their loan officers for rate quotes.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
I've never been beaten on rate or price when given the opportunity and I work for a bank. Feel free to reach out to me, even if you have a loan estimate from a cheap broker I can give you the bank experience (much better than broker) with the same costs. [email protected] - shoot me and e-mail or phone call. 619-379-8999