Mortgage Company or Banks?

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Real Estate Agent with RE/MAX Elite

When choosing to obtain a mortgage, it is important to decide if you can afford the loan origination fees and other fees associated with the loan you are trying to secure. This is often when you begin to wonder if you should have dealt with another lender and by that time, it really is too late to switch horses, so to speak.

Mortgage companies and banks can be quite competitive on some of their fees and very much the same on others. This is one reason why it is important for you to shop around for different options before you decide on one option. Mortgage Companies will occasionally try to beat local banks on their lending fees and if they can accomplish this, then it is probably going to be very advantageous for you to secure your loan through the mortgage company.

Banks are often different than mortgage companies. They want to win your banking business but they seldom cut you great deals unless it is in your loan origination or application fee. Where banks can save you money is often on a refinancing or an assumable mortgage. Otherwise, the mortgage companies are every bit as competitive as the banks are in your area.

Mortgage companies and banks are in business of lending money. You will be their customer if they choose to lend to you. However, the better customer service will likely be realized through a loan with a mortgage company. Some hometown banks still offer customers friendly customer service and some of them are still in tune with the needs of the customer but many of them are only interested in what everyone else is these days which is the bottom dollar they will make off of you if you are their customer.

When choosing to borrow money from a lender, decide what's important to you. Is it customer service through your lending officer or low rates? Do you want to see low origination fees? If so, who has them? Find out if banks or mortgage companies offer you what you need and then do business with the one which appeals to your needs.


Vanessa Stalets
RE/MAX Elite
615-957-6333
615-6614400

http://www.vanessastalets.com

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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
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Vanessa.... you make a few good points. The biggest thing from what I have heard in regards to many banks is customer service. You usually don't have someone that has the knowledge or expertise when it comes to your traditional banks. And I can only gather this from past clients and talk on the street. Gee, before I got into the business, the bank that my dealt with lost his paperwork twice. 

In any case, shopping is good, but the consumer still needs to be careful with this. People are people and bank or mortgage company, not everyone is upfront or ethical. Just last week, my sister's friend who has been asking me questions for 2 yrs, finally sold their house and bought a new one. They went through a bank that had no costs. Well, at settlement, they needed $2,000 extra.....  they had to scramble. My whole point, be careful when shopping. Ask people for a referral, someone that they have used and trust. I have written a whole series on shopping for mortgages and you are welcomed in using them. There are realtors on here that have included them in their handouts.  

Again, some good insight..

 

jeff belonger

 

Nov 10, 2007 10:26 PM #1
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Vanessa Stalets

REALTOR, Brentwood TN Homes, Real Estate
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