Should I Borrow From A Big Bank Or A Mortgage Broker?
The question should be more focused on the loan officer. That is where the danger lies. Big banks are usually well managed from a fraud control point of view. However, their weekness lies in pricing and flexibility.
Lending rates are competitive. No one lender leads the rate game every day. When I worked for Mellon Bank In Bellevue Washington I found them in a place where they were rarely competitive. I had to leave as my ability to be competitive was paramount in importance.
Nitche programs are crucial for some, If you need a no income qualifying type loan for example, you better be working with a broker.
Our company is approved with over 30 mortgage lenders for these reasons. We added 3 this week and will continue to add as we find nitches we can fill.
I’ve always found it confusing that the interest rate quoted me, the consumer, at the bank where I’ve banked for 30+ years is higher than the rate I get from a mortgage broker whose investor providing the funding for said loan is MY bank!
That is one reason why I left Mellon Bank.