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Mortgage Brokers vs. Banks

money, bills, large bills
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Mortgage Brokers vs. Banks

Steve Morgan


money, bills, large bills

Money management

Here in Coastal Delaware there are a variety of different ways to finance a mortgage, I am going to focus on “mortgage brokers versus banks.”
We as mortgage brokers work as middlemen between lenders and borrowers on the wholesale end to secure financing for homeowners. Banks and lenders that work directly with homeowners to provide financing are on the retail level. So what are the PRO’s of both!  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 here’s why working directly with a bank can be a benefit.
– Build off existing relationship (as most offer some type of a checking/saving account tie in)
– You already know the employee / banker who will handle your mortgage
– Lower interest rates in some cases
– Ability to add mortgage to existing banking profile and make automatic payments from linked account

Here’s why a mortgage broker can blow you away:
– They do all the legwork for you, working on your behalf with the lender
– They compare wholesale mortgage rates from a large number of banks and lenders all at once
– Wholesale interest rates can be lower than retail (bank branch) interest rates
– You get more loan options because we work with numerous banks and lenders
– Brokers can finance tricky deals because of their knowledge and various lending partners
– Are typically easier to get in contact with, less bureaucratic

That said, your loan experience can really vary based on who you choose to work with, I would say It really depends on your situation, and knowledge of the loan contact you ultimately work with.
Not all mortgage brokers are good or bad, and the same is true with banks. However, one benefit of using a broker is that the experience is probably a lot more consistent because it’s just one person (and their team), as opposed to a large bank with thousands of employees.  One of the many benefits my clients say is it’s easy to get me on the phone or speak in person.  We all provide personal service, unlike others you and l will have a direct phone number to reach other, and you can even visit me at my office, your home or off site close to your work. You might not find the same level of service at the big banks…
So if you want someone to guide you through the loan process, I am an excellent choice for you. To sum it up, mortgage brokers can be a better option if you’re shopping for a loan!


Steve Morgan

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