Chances are that you are thinking about getting a mortgage from either a broker or a bank. Do you know the advantages/disadvantages to both?

There are mortgage brokers, who work as middlemen between the banks and you on the wholesale end to secure financing for homeowners. Then there are banks and lenders that cut out the middleman and work directly with you to provide financing on the retail level. Know the pros and cons for both to know which one is right for you when you are looking for a good mortgage for your home.

Pros and Cons to Both

We should mention now, if you have a poor credit score you may have little choice between the two. People who get rejected by the banks often turn to brokers as the next best option.

Working with a bank

Pros

• You already know the banker who will handle your mortgage
• You can build off existing relationship, and may qualify for discounts
• The ability to add your mortgage to your existing profile and make direct payments
• Lower interest rates in some cases

Cons

• Conservative loan programs
• Bureaucratic, lengthy process
• False promises
• Bankers are more likely to make mistakes

Working with a broker

Pros

• They do all legwork for you
• You can compare different rates
• Whole interest rates can be lower
• Less bureaucratic, easier to get in contact with

Cons

• May overcharge you
• False promises to get your business
• Make mistakes
• May be incompetent

Choose the one that’s right for you! Or, if you don’t want to deal with any of these cons, head straight to the experts! For all of your home loan needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc. We’re direct lenders who have the experience needed to make sure you get the right mortgage.