Now I will be honest this post is going to come off as extremely bias, because well I am bias when it comes to this subject. Brokers in my opinion are hands down the best choice for a borrower to work with while getting a home loan. The reasons are plenty, but we will just knock out a few of what I consider in my opinion to be the most important.
Reason # 1 - Options
Going with a mortgage broker is like going out to the store and picking out a custom suit, or custom clothes. You can pick the color, the fit, the fabric, it is perfect for you. Going with a bank or retail lender is like going buy clothes but the cashier tells you what you are going to wear. Now obviously that is a silly way to look at it but it fits better than you might think.
When you use a broker they are able to shop your loan with many lenders, this means you get options, and everyone loves options! One lender might have amazing pricing, another lender might have amazing speed, another a loan program that the others don't offer, and one that does it all. Now let's talk about the other guys' brake pads.
When you use a bank or a retail lender you get what they have to offer and ONLY what they have to offer. They have set rates, set loan programs, and one sent of underwriting speeds. They can't change or be flexible on the fly and really hold you back from having choices when it comes to your loan. Instead of getting a tailored loan specifically for you, you end up with a one size fits all loan.
In my experience the loan that fits for me, might not be the loan that fits for you.
Reason #2 - Speed
This ties back to the options reason from above but hear me out. If I am helping you the borrower get a loan and I call some of my lenders and some tell me they are 2 days, some say 5 days, some say 7 days to get your file out of underwriting which one would you choose? Well that might depend on a few different things but you have options to have a faster loan process or a slower loan process it is all about you!
Now on the other side we have the bank or retail lender. They get one option for their underwriting team. If the file review is 10 days, well, sorry but too bad for you. You the borrower now have to wait 10 days for a review on your file. When it comes to buying a home or refinancing your home you never want to wait longer than you have to. No one likes waiting so why should you?
So far Brokers 2 - Bank and Retail Lenders 0
Reason #3 - Cost
Now you will see most of these items on the broker side tie in to one another, the options, the speed, and now the costs. If you have options to shop you will notice lower costs that's how it usually goes in the open market. Mortgage brokers are usually independent and are able to find flexibility to get you the lowest costs when it comes to your mortgage. A broker can make less on a deal, find different rate options that pay better rebates, and close your loan fast to avoid long lock periods or extension costs.
Now I need you to close your eyes for a second and think about the last 2 hours of TV you have watched. Now answer me the question of "How many commercials did you see for a bank, or a big retail lender?" Maybe a company that rhymes with Chicken Bones? How do you think these lenders have so much money to advertise over and over again? They build their marketing budgets by the cost and fees passed on to you the client. Billions of dollars are spent every year to get you in their doors with the hopes to keep you there. This is great for advertising but bad for you. Always remember the bigger the marketing budget, the bigger the costs that will be passed on to your.
I could honestly go on and on about the reasons I believe using a broker is the only way to go. You get more options, more speed, and less costs on your loan. Now this isn't to say all banks and lenders are terrible or they won't do a good job, because that would not be true. There are a lot of great lenders and banks in the market place, if they weren't great at what they do they wouldn't be in business. But when it comes down to it would you rather have a custom outfit or one the cashier picked out?