Mortgage Pre-approval - Bank or Broker?

Asked by Christina Fortney, Wed Jan 2, 2013

I am looking into lenders to get a mortgage pre-approval to begin my search for a home. I was just wondering if there is any benefit to going with a big bank for pre-approval - or if I should go with a broker?

I realize that you don't have to get a mortgage from the bank you are pre-approved with - so I guess my question is, would we be considered a stronger candidate by a future seller if we had a big name approve us? Or does it not matter who the lender is, as long as you are pre-approved?

Is it more stressful or more of a pain to get an approval from a bank and then shop around rates when I am looking for the actual mortgage? Is there a disadvantage to doing that?

Thank you, in advance, for all of your help!

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Wed Jan 2, 2013
Big banks are typically looked down upon since they take much longer to close and they don't keep the realtors up to date with the status of the transaction like a mortgage banker typically does.

It shouldn't be stressful for you to get an approval from a mortgage bank, but it typically is with a big bank such as bank of america or chase.

If you need any additional help feel free to ask.
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Mindy Gerste…, Agent, Scarsdale, NY
Wed Jan 2, 2013
Should read "pre-approval" not "per"
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Mindy Gerste…, Agent, Scarsdale, NY
Wed Jan 2, 2013
First you should be aware in shopping for a loan you should not have a lot of mortgage brokers or bankers run your credit. Having your credit run multiple times can actually lower your score. I recommend both brokers from banks and mortgage companies. What is most important is to use one with a good reputation that sellers will be familiar with so your bid will be considered positively given your effort.
You can also get a per-approval to work with, where the mortgage person will get all your stated income but not actually run your credit until you come closer to buying a home. There are contingencies in the letter but it might be good enough initially to bid with. Your realtor can guide you to a reputable banker they work with.
Mindy Gerstein
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Christopher…, Agent, Tarrytown, NY
Wed Jan 2, 2013
Hi, if you go directly to a bank you only get what they have to offer. If you go through a broker you get the best of both worlds. They will shop for the best rate for you, if they are a mortgage bank as well they may fund the loan themselvesm. I recommend Christian Babcock from Mortgage Master 914 447 9691. He works with many of my buyers. Hope this helps! I'm here for any more of your questions :)

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
914 406 9023
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Anna M Brocco, Agent, Williston Park, NY
Wed Jan 2, 2013
Regardless, work with the loan officer you like best....consider asking people you may know for recommendations...
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