Choosing Between a Bank and a Mortgage Broker

Mortgage Broker in Salt Lake CityA few decades ago, the majority of homebuyers got their loans through local banks or credit unions. But there are multiple financing options on the market today, and this can make things complicated for new buyers.

Mortgage brokers, in particular, are a popular alternative to banks. But does this choice actually make a difference? It’s important to understand the unique benefits offered by both channels.

Mortgage Brokers

According to the Altiusmortgage.com, mortgage brokers in Salt Lake City have one major selling point: to get the lowest rate possible for their clients, while making the process as easy and convenient as possible. Since they have access to a wide range of mortgage products, and negotiate volume discounts that they then pass on to you, it’s possible to get lower rates than anywhere else on the market.

The results you get depend greatly on the company you work with. An established broker with plenty of industry experience and contacts will be able to secure the best loans for their clients. Many will also give advice specific to your circumstances, such as qualifying with poor credit.

It’s almost always preferable to access the services of private lenders through a good broker. You get assistance in the application process, enjoy lower interest, and can be sure that the lender you get is trustworthy.

Banks

Despite the strong advantages offered by brokers, there are definitely some benefits to choosing a bank instead. A first-time homebuyer might be more comfortable working with the bank they already have an existing relationship with. Keeping all of your financial business in one place simplifies things greatly.

Banks will also regularly offer long-term clients discounts on their advertised rates, but you will have to handle the negotiations yourself. However, keep in mind that they can be quite strict with their requirements, and borrowers with poor credit histories may have a hard time.