Bank vs. Mortgage Brokers...which one is right for you?

How do Bank Loan Officers and Mortgage Brokers differ?

Bank Loan Officers are representative of one lender, and work to provide you with a product that suits your individual needs. Should your application and personal credit be approved, the lender moves to the property purchase transaction.

Mortgage brokers are considered more as freelance agents, as the provide links between dozens, sometimes hundreds of lenders and an invidual. They are paid a fee to bring these two parties together. They analyze a person's credit to determine which lender is best for that individual.

Sometimes there are few differences from the individual perspectives when considering local lenders. Some mortgage brokers choose out of town lenders who may not fully comprehend local situations and market conditions, and therefore may cause delays in loan processing and closing. Local bank officers, on the other hand, will likely have a better understanding of local situations, and may process the transaction faster than an out of town lender.

Many times, the decision between these two is made solely on the better monetary deal, but a time frame for the transaction should also be taken under consideration. For poor credit situations, mortgage brokers will often be able to find lenders who will approve a loan previously denied by a local banking lender. Also for unique or commercial properties, a more applicable product might be found by a mortgage broker.

In summary, an individual's situation should be the key variable in determining which lender to pursue, but you should be no means limit your search and which lenders you speak to at the start.

Give us a call...we'd love to help you.  As a strong force in the Spokane real estate market, we've worked with the good, the bad and the ugly.  We'd be happy to give you some information and help you to find the perfect fit  :)