Brokers vs Big Banks
Whether you are a first-time homebuyer or buying again, it helps to know your options, how they stack up, and how they affect your wallet.
Mortgage Brokers specialize only in mortgages
Wide range of rates to choose from as they work with many end-investors
Mortgage Brokers access a marketplace to shop your loan to get you the best rate, you only fill out one application.
Mortgage Brokers have more offerings and expertise for self-employed or challenging credit/debt pictures.
Banks offer a wide range of financial products.
Rates offered are limited, only what’s available at that bank
To shop bank rates, you will need to fill out an application at each bank. Typically shopping four to five banks.
Banks may deny an application with low credit or high debt
Borrowers save $8k on average with a mortgage broker. Savings include lower upfront costs and lower interest rates over the life of the loan.
The Big Banks
Big banks have vast amounts of overhead that end up funded by your home loan. That overhead is paid by you via increased fees, interest rates, and closing costs.
Big banks have sales quotas to meet; loan officers also make a commission for pushing specific loan products.
Loan officers at big banks are not building their own business, so they may be less invested in their relationship with you.
Big banks are often headquartered in other cities or states; your money won’t stay in your community.
Our End Investors Compete For Your Loan
We look across our 40+ end investor partners, find the ideal loan for your unique circumstance and provide the best loan for you— not the one that pays the highest commission.
Because our loan offerings are not commission-driven, you get unbiased advice for your financial needs and future assets.
Your Go-To Resource
We have a history of becoming a go-to resource for our clients, their friends and family. With your best interest in mind and our expert knowledge of loans, we seek to be your broker of choice for every purchase. After all, your home and real estate purchases are among the most valuable assets you will build.
Frequently Asked Questions
Using an independent mortgage broker doesn’t mean your loan will come from a small lender; many on the wholesale market are the largest lenders. It’s also common for loans, if a standard conventional fixed-rate mortgage, to be bundled and sold to Fannie Mae or Freddie Mac – government entities that guarantee your loan. When your loan is sold, another large lending company that services mortgage loans will be assigned the servicing of your loan and will collect your monthly payment.
Independent mortgage brokers don’t just represent one lending entity. They instead shop your loan across many wholesale lenders who compete for your mortgage loan. Their access to the wholesale lending market means quality home loans at much better prices. And with less overhead, they pass those savings on to you through reduced closing costs and a lower annual percentage rate.