What is the difference between a Mortgage Broker and a Bank? Is there a benefit in going with a Mortgage Broker over my own Bank? Why would I choose a Broker over a Banker? These are questions that many people may ask themselves when they are deciding on how they should go about their financing when purchasing a home.
Well, the main difference between a broker and a banker is that a mortgage broker has the ability to shop for interest rates with multiple companies with just one single credit pull, where a banker only has access to the interest rate that their bank is providing that day. Due to a broker’s ability to search for lower interest rates, it is more often than not that your monthly mortgage payment is much less as well! The comparison doesn’t stop there! Banking institutions are very large and have tons of members, employees, and difficult processes about them. This is one of the areas that a mortgage broker shines! You see because mortgage broker companies are much smallin size a broker is typically able to close your home loan in a fraction of the time that a big bank can. The added benefit is that you are not just a number with a mortgage broker, they know you as a person and are actually looking out for your financial interest where a large bank will not! Banks have tons of members and revenue coming in and for this reason they do not need to move fast to get you in your dream home or get you the best rate out there. On average a good mortgage broker will get you an interest rate that is a .25% less than what a big bank will and close your loan in about 3 weeks to a month. Big Banks typically take 45 to 60 days to do the same thing with a higher interest rate and a smile on their faces! My source? My experience. I have seen countless times where Rock Mortgage beats a Big Bank and closes their buyers’ loan quickly and stress free. I have also seen times where a buyer stays loyal to their banking institution and their loan takes 60 days to close and sometimes, they don’t end up closing at all due to an inexperienced banker/ “loan officer” making a mistake on their loan.
Fun Fact: At a big bank, their “loan officers” don’t even have to have an actual license to produce your home loan ….
LET THAT SINK IN!
In short, Brokers will get you into that dream home with a lower interest rate and in less time than a banker will. But don’t take my word for it call Rock Mortgage Houston today, the #1 Mortgage Broker in Houston and find out!