Do you prefer to work with a mortgage broker or a direct lender? Why?

Asked by Rick Obst, Eugene, OR Mon Dec 6, 2010

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James Gordon…, Agent, Hamilton, OH
Tue Dec 7, 2010
Rick in my area we also have mortgage bankers and I prefer to work with a mortgage banker. Mortgage bankers are not dipository institutions but close most loans in their name. They make their money off selling the loan instead of an underwriting fee so closing costs are lower and they have the same capabilities as a mortgage broker.
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Catherine Be…, Agent, Lawndale, CA
Mon Dec 6, 2010
A good broker will have more products to choose from which will give you more flexibility in the types of clients you can work with.
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Lana Lavenba…, Agent, Grants Pass, OR
Mon Dec 6, 2010
I prefer my mortgage brokers because they make sure that my clients get the best deals out there with the best rates, etc. They also will tell me whether or not my clients can get a loan and for how much. If they simply do not qualify, they will let me know that. There are few direct lenders that can or will do that.
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Dave Sutton, Agent, Portland, OR
Mon Dec 6, 2010
I always used to prefer a broker, and still do in most cases. The reason is a good mortgage broker can take a buyer's individual circumstances into account when deciding which lender to send it to.

The only problem is that a number of the big banks decided a year or so ago to stop cooperating with mortgage brokers, so the only way to get a quote from, say Bank of America, is to work with an in-house mortgage officer.

That means that to compare the whole market (like a broker used to be able to do), they now have to go to B of A, and every other big bank directly. By the time they get to bank #6, the terms have changed at bank #1 anyway.

It is not a consumer-friendly system today
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Mon Dec 6, 2010
Mortgage broker, by far. Working with banks and direct lenders most of the time you're dealing with a salaried person, therefore they have little incentive to work hard or fast or be creative. In addition to that most direct lenders and banks offer rates that are significantly higher than those that whole broker can get.

Andrew and Elena Ollick
Amerivest Realty
Latest Post: Housing Has Finally Hit the Bottom
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