mortgage broker vs direct lender

it depends. i used chase and citi as well as a mortgage broker, the last time i bought. if you have a good handler in the bank who will keep your records and will refeed them 3/4 times as they are lost through the process, then you will be fine. mortgage brokers do the same, but can shop you around and sometimes get you a better rate. you will also avoid the hassle of tying yourself down to a single bank that may decide to put up a few annoying road blocks.

Mortgage Broker here, been a broker since 1990. I originally got my license because as a small investor, I had some bad experiences going directly to banks for a loan, and with my license was able to get loans through my company which made a big difference.

Now is no different. Many loan officers do not have much experience and are not very knowledgeable. I have heard about many Instances where a few days befor a borrower was to close on their loan, the bank canceled the loan due to the fact that they neglected to verify that the building was Fannie Mae approved.

I depend on repeat business and have to be very diligent. Even the NY Times stated in an article about mortgage brokers that they are far more knowledgeable. Also a mortgage broker can submit your loan to several banks, and of course a good broker will give you personalized service.

Ellen Silverman
E.S. Funding Co.
Licensed Mortgage Broker since 1990
Licensed Real Estate Broker since 1987
esfundingco@aol.com
www.esfunding.instantlender.com
NMLS #60631

This is a ridiculous generalization: "Even the NY Times stated in an article about mortgage brokers that they are far more knowledgeable."

The benefits of working directly with the bank is that you are going directly to the source of the funds, as most brokers are going to be sending their deals to a large bank anyway. If you are a conforming borrower, meaning not stated income or a foreign national, the large bank is going to be able to have the flexibility to give you the best rate. Generally speaking the large banks are going to be able to make exceptions on certain things that they will not give through wholesale channels, ie. Brokers.

I would recommend that you contact any of the big 4 banks and try to get the best rate. The main thing with going to a bank is that you need to get in contact with the people that do a large amount of business. When someone is doing a large amount of business, they aren’t going to waste your time or theirs by lying to you about something. It’s a numbers game.

Give me a call and I would be more than willing to give you some of the top people at each lending institution.

Jim McPartland
AVP, Mortgage Banking
Bank of America Home Loans
50 Rockefeller Plaza, 11th Fl.
New York, NY 10020
(646) 556-0207 Direct
(917) 993-2358 Mobile
(866) 614-4829 Fax
james.mcpartland@bankofamerica.com
NMLS#614743

I love this thread: brokers v. lenders. It's like watching Westside Story!

Reading these boards over the years, I get the sense there is a certain level of randomness in drawing a good person at the bank with the right relationships in underwriting to shepherd the process through.

With respect to rates, the more plain vanilla your situation (conforming loan, plenty of cushion in financials, easy building to lend to, no funny terms you want), the less worthwhile a broker is. This was my situation, and I called 4-5 banks and one bank was so far below the others [a BAC guy didn't believe me when I told him the quote], it made no sense to shop further directly or with a broker.

http://www.foxbusiness.com/government/2013/05/06/ny-ag-sues-bofa-wells-fargo-over-mortgage-deal-violations/

https://www.google.com/search?q=schneiderman+sues+again&ie=UTF-8&oe=UTF-8&hl=en&client=safari

From my experience, brokers are better as they are more creative in getting things done vs banks which may not be that flexible and they don't have the same incentive. Also, brokers can shop around with different banks which may be tiring for an individual to call citi, chase, small community banks,etc.

@crescent
You are totally correct. Generally one bank will price through the market in order to hit their desired goals from their secondary marketing teams. These are typically temporary in order to fill the required volume by the GSAs.

the quotes coming back seem to confirm what @crescent22 said. my credit score is close to 800, 25% down, 30 yr fixed, no point. the rates i got are the same from bank and broker. but the fee can vary quite a lot.