Mortgage Broker or Bank?

Now that our offer was accepted, I need to go about comparing mortgages. My friends and my REA are all pushing for me to go to a broker - Continental keeps coming up as a suggestion - because they compare mortgages for you, saving you the work.

But my question is: do I need them? Do I pay more for the privilege of them doing the search for me? I'm going for a conventional loan, 20% down, great credit... those 5% and lower interest rates that banks advertise and that people complain no one really qualifies for - I qualify for them. I've already been pre-approved by Chase and HSBC.

So do I lose money by having a broker set me up with a loan that I could easily arrange for myself? Or does it cost me nothing, and after all the stress lately, I should just sit back and let someone else do the work for me for a change?

Re: Mortgage Broker or Bank?

we used a broker- they have access to hundreds/thousands of programs and they help you find the right one- they also walked us through the entire process, kept the bank on track and worked with our lawyer- I was VERY satisfied.

We used Preferred Empire- which is affiliated with Prudential Douglas Elliman (I used to work there)

eta- we paid a fee- i *think* $300- but honestly for what our broker did, I would have paid 10x that

Message edited 11/11/2009 1:50:25 PM.

Re: Mortgage Broker or Bank?

Bank, I didn't want to pay an extra fee for the work a mortgage broker would do when I could do the same legwork.

Re: Mortgage Broker or Bank?

we went with a banker. we also knew her so i dont know if we wouldve gone to a banker if we didnt know her but everything was great so far (we're most likely closing next week) i know the people buying our house had a problem with a broker and is now going with a banker and theyre pushing it through. i feel like a banker will do everything they can to get it approved

Re: Mortgage Broker or Bank?

I used a broker that I knew. I had NO CLUE (nor did my DH) how to go about mortgage shopping without one.

Turns out NJ Lenders ended up selling our loan to Chase anyway and we're both Chase customers, but who knows if they would've handed over the same rate so easily!

Re: Mortgage Broker or Bank?

we used a broker and he kicked arse....

we actually met with him first to do a true mortgage calculation for us so we didnt look out of budget

there was a fee involved but for all the work he did, i would have paid double whatever it was to save me the headaches

Re: Mortgage Broker or Bank?

The mortgage broker I previously used had better rates than any bank I have seen, even when you factor in his fee. It worked out in the end.

But this time around I used my out of state credit union since I needed a 90 day rate lock and wanted to lock in now.

Re: Mortgage Broker or Bank?

we used a mortgage broker and he was awesome...i wish he was in NY so i could recommend him....we got a very personal experience and we felt like we were his only client...he jumped through hoops for us and got us to closing in 30 day even with some crazy stuff going on...

Re: Mortgage Broker or Bank?

bank if you are the "ideal" buyer.