Some mortgage brokers work as middlemen between lenders and borrowers to secure financing for homeowners. There are also banks and lenders that work with homeowners to provide financing.
Pros and Cons of Each
There are ups and down to each. Sometimes you’ll have little choice if you have a low credit score or a difficult loan situation.
Pros of working with a bank:
- Build on an existing relationship (discounts if you have an account with that bank)
- You are familiar with the banker who will work with you on your mortgage
- Lower interest rates may be offered in certain cases
- You may be able to add your mortgage to an existing account and make payments automatically
Pros of working with a mortgage broker:
- They may do some the legwork for you
- Can sometimes compare wholesale rates from many banks and lenders at the same time
- You may get more options on your loan as they work with many banks and lenders
- Brokers may sometimes finance tricky deals using their knowledge and numerous lending partners
For more information on the critical differences between these two sources of mortgage loans, get in touch with the loan professionals at Midland Mortgage today.