Mortgage Broker -vs- Big Bank

If I had a dollar every time I was asked “why should I use a mortgage broker instead of my bank” I probably wouldn’t be writing this blog.  Now, you may think I am biased since I run a mortgage broker business but let me say “aha”  to you because in my 25 year career I have seen all sides of the mortgage business.  Starting as a Broker, moving to a Mortgage Bank following a move to what would be considered an S&L (your typical neighborhood savings and loan Bank) then to a commercial lender,back to a Mortgage Bank and eventually opening up a Mortgage Brokerage branch. So when the question comes in I am well prepared to answer it.  And the answer is (drum roll here)…… Broker, Broker, Broker.  Why? Because you will get better advice, pricing,and mortgage choices.  Now with that said, you should still call around and get recommendations from friends or family members (don’t always count on your realtor especially if their company owns or is affiliated with a mortgage company).  The industry calls that steering, I call it illegal.  Community Lenders and/or Banks have their place in the mortgage business especially when it comes to CRA (community reinvestment act) lending which are special programs that usually Brokers can not offer.  But if you are not eligible for those programs (and few are), I believe you will always save money using a Mortgage Broker and have better mortgage product options and mortgage planning advice.

If you would like to have a more personal discussion on this topic please feel free to email me at john@centerpointemortgage.com.