You can get a mortgage loan from different sources. However, in this article, we’ll be focusing on the pros and cons of getting a mortgage from a bank and a mortgage broker. Both are viable options and carry a list of benefits. But what is the best source for you? How can you be sure which one is best? These are just some of the questions people looking for a mortgage normally ask. And often, these simple questions come with a range of answers. Depending on your qualifications, getting a mortgage can either be hard to easy. Find out what option suits you best.
A mortgage broker or a bank?
In general, there are mortgage brokers that act as middlemen between borrowers and banks or lenders. This is done to secure a financing option for a prospective homeowner. On the other hand, there are lenders and banks that skip the middlemen and work directly with the client, providing financing options on the retail level.
Both of these options can offer benefits for the buyer. However, it would largely depend on the individual loan scenario and needs. It is best to compare both options to find out which one would be suited for your needs and qualifications.
Most of the time, buyers look toward banks as their first option for a mortgage. There’s a good reason for this. Mortgages are normally offered by a client’s primary banking institution. And what’s most appealing is the level of trust that has already been established between banks and clients.
On the other hand, a lot of people also turn to mortgage brokers when they get turned down by banks after failing to qualify. A mortgage broker is primarily the next go-to option for people who weren’t so lucky with banks. Engaging with a broker also allows a borrower to find mortgage rates that are substantially lower.
Either way, there are upsides and downsides between banks and mortgage brokers. Here’s what you’ll be getting from both:
Pros of dealing with a bank directly:
- Being able to get a mortgage depending on existing relations with banking institutions
- You already have a clear idea of the bank and how it handles customers
- Banks are more trustworthy than their smaller counterparts
- Best mortgage rates but in some cases only
- Loan programs are a bit conservative
- Processing is on the lengthy side
- Often offer false promises
- May overcharge you
Benefits of working with a broker:
- You don’t need to bear the brunt of document processing and dealing with the lender
- They compare all mortgage rates from different banks and lender so you could get the best
- You get more options
- Brokers can get away around tricky deals as they work with numerous lenders
- They are easier to deal with as compared to banks
- Interest rates are often lower than loans from banks
- They do make mistakes like everyone else
- May also overcharge you
- False promises (although, this depends on the broker)
- May not have a wide connection with lenders and banks
If you want to get away with the best mortgage, it’s best to weigh your options. Do you want to go with the more conventional approach? Or are you willing to go with a mortgage broker and search for the best mortgage rates? While this remains a question for most, it’s always best to consider both. Experts like MB Mortgage Pros can offer you a range of services that will be suited for your needs.
New Program called Lock & Shop offered by MB Mortgage Pros
This will allow borrowers to lock in their interest rate while they shop for a new home. If the rates go down while they are shopping they will get the better rate. Rates go up and the rate they locked is their rate.
Call me to discuss this program as well as the many other great loan programs I offer.
Call MB Mortgage Pros if you want to know more about mortgages and your options.
MB Mortgage Pros
630 Chestnut Road
Myrtle Beach, SC 29572