is it better to get a loan directly from a bank or use a loan officer (real estate, credit)

[mb4play]

which one can give me a better deal?

[chet everett]

Um I suspect you might be confused. Typically a 'loan officer' works for a specific bank. The other common route to get to obtain financing for a home is to work with a "mortgage broker" who has multiple lending sources.

There is no real legal difference and many people have reported that the ultimate terms / rates are the same.

It is smartest to interview several sources of mortgages, advice generally is to contact a variety of institutions -- large money center banks, regional banks, credit unions, mortgage brokers. As rates change it is less important to get quote and more important that you have some one that is responsive, trust worthy and willing to explain things in a way that is both understandable and accurate.

You should NOT give this folks anything more than a name and phone number, specifically tell them your are just inquiring about their ability to handle your eventual loan application and funding in a fair and efficient manner.

A phone call of face to face meeting is far more useful than an email and the sales models' of the firms that advertise some revolutionary change are failed and false -- they will simply refer you to the outbound telemarketing department of lenders that use high cost, high pressure sales tactics to run borrowers through a mill -- avoid like the plague!!!

[SmartMoney]

Here's my take on the OP's question:

When I worked for Bank of America, there were four "channels" that originated loans. They were - personal bankers, 800 call center, mortgage loan office, or bank branch. Wells, Chase, Suntrust and Citi also have these models.

I strongly recommend you do go with the retail loan officers. I witnessed on more than one occasion where the bank branch originated a mortgage in between CDs, checking accounts and VISAs. I remember one had a problem at the closing table and the branch manager's response was to tell the borrower to get the real estate agent to pay it. Not good. You deserve better than a very, very part-time loan officer.

The 800 number could be way across the country. You'll probably get a better rate, but you will also talk to someone different at every call. If you run into trouble you won't have anyone to help you fight through the system.

The personal banker won't come into play unless you have over 100K at most of these banks, and the rate is no different than the retail mortgage loan officer.

So, it brings us back to the retail mortgage loan officer. It will give you an advocate with a direct number and a cell for the weekend.

[Swil]

Don't forget about the Wholesale mortgage loan officer. The guy in the broker office down the street that is contracted with several lenders around the country. The guy that has the lowest rate vs cost compared to the big banks retail lines. The one that is accessible on the weekends by cell and after 5pm on weekdays. The guy that could show up at your doc signing with the notary at your home if you wanted him to be there to explain some of the details.

I know a LOT of clowns out there painted a very ugly graffiti-clad picture of the private mortgage broker over the last few years. But rest assured, the ones that are still around now, are the best, brightest and most honest and experienced in the industry, because only the strong have survived. Look one of those guys up too. It might be your best option.