Financing in East Flatbush>Question Details

Troy, Home Buyer in Brooklyn, NY

How much money could i save if any if i use a mortgage bank instead of a mortgage broker at closing?

Asked by Troy, Brooklyn, NY Mon Jun 21, 2010

I have a mortgage bank that is offering me a comecial mortgage,I was told its a lot of paper work or foot work for me does it worth it than to use a mortgage broker.Whats the advantage an disadvantage or using a mortgage bank or a mortgage broker? Would i save ? Please give me an example of how much i might save on a $300000 mortgage, Thanks

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3
A Mortgage Broker will have a selection of lenders for you.
They will also pre-qualify you and let you know if there's a problem upfront.
I recommend using a broker.
Good Luck.
0 votes Thank Flag Link Wed Jun 30, 2010
I agree with Chris, I would just like to add that everybody is working on commission, one way or another, so the answer to the question, "How much money would I save?" is $0, or it might cost you money to go directly to a bank compared with using a mortgage broker.

The assumption that going directly to the bank, instead of using a broker, saves money is just not true, and I believe the opposite is more often the case.

The also applies when you go looking for insurance. Usually you can get a better deal with an insurance broker instead of showing up at a storefront of one of the big insurance companies and buying a policy. I've done it both ways.

If you would like a list of mortgage brokers, send me an email.

Karla Harby, VP, Lic. Real Estate Salesperson
Charles Rutenberg Realty NYC
kharby@crrnyc.com
0 votes Thank Flag Link Thu Jun 24, 2010
A mortgage broker represents a portfolio of lenders while a single bank only represents their individual loan programs. The better deal depends on the terms of the bank's mortgage program versus the best terms that the mortgage broker has available. Usually you can find a better deal through a mortgage broker just because they represent an entire portfolio of lenders, but the only way to tell for sure is to compare the terms of both of their offerings and see which program is the better deal.
0 votes Thank Flag Link Tue Jun 22, 2010
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