mortgage brokers vs. banks

There are a variety of different ways to finance a mortgage, but I’d like to focus on two specific channels, “mortgage brokers versus banks.”

There are mortgage brokers, who work as middlemen between banks/mortgage lenders and borrowers on the wholesale end to secure financing for homeowners. And there are banks and lenders, that work directly with the homeowner to provide financing on the retail level.

There are pros and cons to both, and sometimes you will have little choice between the two if you have poor credit or a tricky loan scenario.

The majority of homeowners turn to banks when it comes time to get a mortgage. They are the most obvious choice, mainly because home loan services are usually offered at the customer’s primary banking institution.

However, borrowers who have trouble qualifying or need to finance tricky deals will often get turned away at banks. So for these people, using a mortgage broker is often the next best option. Of course, pricing with mortgage brokers can be just as competitive as a bank, so long as the broker doesn’t take too much off the top. Wholesale rates are actually much cheaper than retail interest rates you’ll get with banks.


source: http://www.thetruthaboutmortgage.com/mortgage-brokers-vs-banks/