Cons of working with a bank:

  • Conservative loan programs
  • Do not disclose the yield-spread premium
  • Lengthy process, very bureaucratic
  • False promises
  • They make mistakes
  • May overcharge you (commission doesn’t need to be disclosed)
  • Incompetence (poorly educated about the home loan process in some cases if they’re just general bankers or customer service types)

Pros of working with a mortgage broker:

  • 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 they 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

APPLY FOR A LOAN