broker or bank (loan officer, real estate, credit, fees)

[destiny826]

My wife and I both have steady jobs, good credits and at least 20% down payment. Is it better off for us get a loan through a mortgage broker or from a traditional bank? I was told by someone that Wells Forgo have better rates than what a broker can get for us.

[chet everett]

I can't think og a way to say this other than whoever said this is flat out wrong. If they work for the bank in question I would go so far as to say they are lying.

The way loans are priced for the consumer has no room for "better rates" for any origination channel.

It simply does not matter if the borrowing begins with a bank, credit union, mortgage broker, direct lender, consolidator, marketer, or house of worship or fraternal organization. Ultimately they are all fungible debts backed uo with the collateral of a piece of real estate. Those debts and then pretty much unversally monetized into a government backed pool and sold over and over.

Every loan originator has basically the same overhead of computers and people. They have marketing costs that are all in the same ball park, be it posters in retail bank lobbies, 800 numbers with radio ads, email lead generation tied to web sites, flyers they stick in with your cancel checks, business cards and calendars dropped off at the real estate agents' offices or billboards.

Believe mortgage brokers that could nit consistently deliver better service with the same or better rates as banks would soon be out of business. The best mortgage brokers will encourage their clients with top notch credit to trumpet the excellent rates they get so their friends that might nit have such good scores also come to them. Repeat business and referrals are the life blood of mortgage brokers. Banks can live off fees from retail and commercial clients and do not depend so heavily on keeping mortgage customers pleased...

[VictorBurek]

I am a mortgage broker and know many retail loan officers that work for direct banks. As a broker, i can offer better rates than my retail friends. Addtionally, as a broker i can close a loan much faster. A friend of mine that works for bank of america has to lock rate for 90 days as it takes them that long to close a loan. I can close in less than 30 days.

Your best option is to find a good broker through a referral. And also call a direct bank and see which one can offer the best overall deal. Please post back and let everyone know where you found the best offer.

[SmartMoney]

I agree with the above and recommend you work with someone located near the subject property. Agents in my area (or I should say, their seller's) are rejecting contracts where they do not recognize the lender's name. The homes that are priced right are seeing serious competition. It doesn't take much to pick a reason to reject an offer.