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Using mortgage broker versus banker?

I'm int he market for a 5 perc down conventional loan - should i go through a mortgage banker or broker? Will going through a brokerage get me lowered fees? Trying to explore all options here so any recs will help by jendula9742218 from Estelline, Texas. Mar 9th 2015 Reply


Cody Velkovich (Cody_NRL)
#167 ranked lender in Texas - 87 contributions

Of course I'll be biased and recommend myself, but I would stick to a mortgage bank. They close all of their loans in their own name and then sell them afterwards. A Broker will shop different banks for you, but does not work for them and requires a commission from the bank for his fees.Let me know if you're interested in getting pre-approved. We also have a 3% Down Conventional Loan as well.

Mar 9th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Every area is different, but in general, brokers are a better deal.. typically the overhead for a brokerage is much less than the big box bank, so they can offer you better deals which result in lower fees and costs as well as lower interest rates.. But the biggest advantage of a broker is the fact that they have lending relationships with numerous lenders (i have 21) with each lender offering a different set of lending guidelines.. the more lenders, the more lending options, and the greater likelihood your loan will get accepted.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Mar 9th 2015
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Scott Bible (scottbible)
#233 ranked lender in Texas - 3 contributions

That is a great question. I have to agree with Cody. I don't think you will necessarily save money with a broker. I suspect you pay more upfront in origination to compensate the broker. I'm biased as well perhaps. I'm a mortgage banker as well but we also can broker out loans on occasion when the need arises. I suspect that a rare, unusual niche type loan scenarios might be better served with a broker that can shop the scenario around. If any brokers would like to chime in and perhaps they could share a different perspective. If you need any further clarification on this or any other mortgage related questions don't hesitate to contact me.

Mar 9th 2015
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