Your Bank Down The Street
The local bank brags about their friendly, neighborly way of doing business
but that atmosphere hasn't really existed in most banks since the 1950's when the human element was pretty much eliminated
from the decision making process. Jimmy Stewart in "It's A Wonderful Life" may have been the last bank officer
who could evaluate an applicant on character and a handshake. Today's bank representatives are simply information
takers who will be passing your application on to an underwriter who will process your loan through loan processing software.
Because banks have a much higher overhead most retail bank rates are a bit higher than a broker can offer. Banks
will expect you to adhere to their "banker's hours" so expect to take some time off from your job. Banks however
do usually offer more attractive options when seeking 2nd mortgages and Home Equity Lines of Credit including lower closing
costs.
A Mortgage Broker
The mortgage only broker has several advantages over banks if what you need is a first mortgage.
Mortgage brokers usually have access to lower wholesale rates that a bank. I have seen instances where a customer
was shopping a loan with a bank and a broker got them a lower rate and better terms with the same banks wholesale division.
A mortgage broker will almost always work outside of the 9 to 5 box so you can do the loan on your schedule. If
you have anything unusual about your loan or credit scenario a broker may be your only recourse because they can access hundreds
of programs offered by any lender across the country.
