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Finally in a position to buy my first home but I'm not sure what the difference is between going with a broker or bank.

I spoke to a broker a year ago but never applied because I wasn't ready. I've been looking at houses and in a better position to buy a condo but not sure if I should go with a broker or bank. Is a bank safer? by cliffordj751 from Keysville, Georgia. Jan 25th 2021 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,326 contributions

No. A bank is not safer, and you should stay away from them for your mortgage. Bank loan officers are order takers and can only offer the products of their employer, even if there is a better loan product for you with someone else. Broker Loan Officers have much more experience, better training, are required to take 20+ hours of training plus annual continuing education. We are Licensed and held to a higher ethics standard required by the National Mortgage Licensing System. Bank employees are not required to take education classes or continuing education and are rarely licensed. Most are simply registered with the NMLS because they work for a bank, who is responsible for their actions.Licensed Mortgage Brokers like myself offer products from multiple lenders, not just banks and we don't have our own products, so we strive to find the best loan programs and best pricing for our borrowers and almost always beat the banks in pricing and rates. My company is licensed in 47 of the 50 states with educated, and all of our Loan Originators are Tested AND Licensed. I do hold a license for Georgia and would be happy to help you find the perfect loan. Just reach out. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except MA and NY and we are pending approval in VA, so give us a call. ~ 480-889-9000.

Jan 25th 2021
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,529 contributions

There is no difference in "safety" - But it is well documented that if you want the best deal and the best options, a non-bank lender/broker is the way to go. First understand that almost all Loan Officers at banks and credit unions are not licensed, and more of just an application clerk, while Loan Officers at non-bank lenders and brokers are REQUIRED to have a personal license. Next, banks only sell their own products, while brokers and non-bank lenders sell everyone's loan products. Finally, almost without fail, banks have higher interest rates. Mostly because they can get away with it because people have silly notions with thinking things like banks are somehow safer.

Jan 29th 2021
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