Mortgage Broker vs Bank

Posted by Eric Miller on Friday, December 9th, 2011 at 11:00am.

Loan Are you planning to purchase a home in the near future? Whether you're searching for Ft. Lauderdale real estate, Denver CO luxury condos, or just about anything else, it is a good idea to gain a clear idea of the mortgage loan options that are available to you. When it comes to obtaining a mortgage loan, there are two primary paths you can take. The first is to obtain a loan directly through a mortgage lender, while the next is to hire a mortgage broker to help you find the right loan to suit your needs. To help decide which route is best for you, it is important to explore the pros and cons that both options have to offer. Going Directly Through the Lender If you are comfortable with exploring your mortgage loan options, going directly through the lender may be your best option. Working directly with the lender can offer some potential benefits. Getting a mortgage loan through your local bank, for example, can be more convenient if you have already established a relationship with that particular institution. Furthermore, it is possible to find a better rate when working directly with a lender and, of course, you do not have to worry about paying anyone a commission. For these reasons, those with a solid credit score who are comfortable with comparing offers may choose to obtain a mortgage directly through the lender. Hiring a Mortgage Broker For those who do not have time to compare offers or who are uncomfortable with the process, hiring a mortgage broker may be the more attractive offer. Since mortgage brokers have relationships with multiple lending institutions, they can search through a variety of different offers in order to find the one that is best suited to your needs. Furthermore, since some lenders only offer their wholesale prices to brokers, you may be able to find a loan with more attractive terms when you hire a mortgage broker. If you have poor credit or if you are trying to make a high-risk real estate purchase, hiring a mortgage broker may be the only way you can obtain the loan you need. When you work directly with a lender, the bank loan officer has no incentive to take on a high-risk loan. Whether your loan is approved or not, that lender still gets paid the same. Mortgage brokers, on the other hand, work on commission and make more money if they find a deal that suits your needs. Therefore, you significantly increase your chances of obtaining a mortgage loan when you work with a mortgage broker. About The Author - Brian Kinkade specializes in Denver Colorado luxury condos, such as Spire Lofts Denver

Eric Miller is an award winning Florida Realtor, salesperson and broker. His website, provides an up-to-date guide to Fort Lauderdale Condos for sale, and the most complete buyer, seller and investor information for the Fort Lauderdale Real Estate Market.

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