Financing in Salt Lake City>Question Details

Scott, Home Buyer in

Mortgage broker or bank to purchase a home?

Asked by Scott, Sat Apr 28, 2012

From what I read online, mortgage brokers tend to be more expensive than a bank. However, when I request a quote on zillow.com for a specific loan it seems the best quotes are coming from mortgage brokers. This is a plain vanilla mortgage. i.e. 30 years, 5% down, between 275,000 and 300,000. So then what is the disadvantage to using a broker vs going to a bank?

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I second what Trevor has outlined. Keep in mind the cost of your mortgage is relative. Meaning, by all impressions your bank may appear to have a "better rate and closing costs", while they'll take 45 - 60 days to close on your mortgage. On your purchase agreement, you'll likely have a 30 day window in which you have to close on your home. Working with a Correspondent Lender is really the most optimal route. Unfortunately most consumers only know to ask about rates and fees. By not asking the right questions, or not beging given the right advice you could lose thousands of dollars over the life your loan. Simply put, your bank or credit union in most cases are simply a processing center. 9 times out of 10 you'll not even come close to getting the advice you need on a transaction this large.

I'd love to hear your thoughts and also like to give you a second opinion.

I look forward to hearing back from you.

Mark Moyes
NMLS# 267431
801-999-0886
http://www.loangotoguy.com
0 votes Thank Flag Link Mon Apr 30, 2012
I would reccommend you shop around and compare both. Some banks and credit unions have special in house programs that may benefit you and sometimes the mortgage broker is more competitive with less in closing costs and better interest rates. While you are shopping around, you are also looking to find a good loan officer (they can vary greatly even in the same company). You want to find a loan officer that will work to explain what type of loans you may qualify for and the benefits of each, the costs, and at the same time take care of your needs, questions, and wants. This will make your loan process as smooth as possible when you have someone you know is on your side and doing their job for you.
0 votes Thank Flag Link Sun Apr 29, 2012
When you are buying your home, get a referral to a Local Mortgage Banker.

Mortgage Bankers in your community will provide you with a much higher quality of service and financing options than any "Big Bank." Local Mortgage Bankers have long been the source of excellent financing options for homebuyers. Further, Loan Originators who work at Mortgage Banks are LICENSED whereas Loan Originators who work for the "Big Banks" are only REGISTERED. There's a BIG difference.

Sit down face to face with your Mortgage Banker to be thoroughly prequalified. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Consumers have been led to believe---thanks to huge advertising budgets with the BIG BANKS---that they should go to their bank for a mortgage loan. This is the WORST place to get assistance with the BIGGEST PURCHASE of your life! These BIG BANKS are basically BIG CORPORATIONS. You're a number, at best. With a Local Mortgage Banker you will be treated like a friend and a client for life. You can't imagine the high quality of personalized service you will receive from a Mortgage Banker until you try.

As to price---rate and fees---competitive if not better than the BIG BANKS.

You can verify the License of any Licensed Mortgage Loan Originator at nmls.consumeraccess.org

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Sun Apr 29, 2012
Great points Trevor :)
Flag Mon Apr 30, 2012
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