Mortgages: bank vs. broker

NIHA Posted: Nov 25, 2002 02:52 PM

Mortgages: bank vs. broker

I'm going to look into the mortgage rates at our bank, but since we are buying a co-op my friend recommended a broker that specializes in co-ops.
In general what are the pros and cons of getting a mortgage through a bank vs. broker?

Fran M Posted: Nov 25, 2002 03:06 PM

Re: Mortgages: bank vs. broker

A mortgage broker will do the leg work for you. Check rates from various lendors, offer creative solutions if you need more than 80% financing or need a little help with your credit. They do of course charge a fee for their service.

If you are willing to do some research on your own you really dont need to pay a mortgage broker.

Mrs2Be Posted: Nov 25, 2002 03:06 PM

Re: Mortgages: bank vs. broker

I think it has to do with fees and how much they charge. Some banks waive the fees, while the brokers do not.

I would try both and see who gives you the best rate and make sure they all give you a breakdown of their upfront fees.

Ask for a cost of closing estimate to give you a better idea...

MarcellaBella Posted: Nov 26, 2002 12:02 PM

Re: Mortgages: bank vs. broker

Stay away from Brokers!

Nina, do you and your husband have good credit? if so, you should call up Countrywide.. they will do everything for you and you will cut out the middle man (ie, broker) the same person who processes your application will handle your file up to your closing..

NIHA Posted: Nov 26, 2002 02:11 PM

Re: Mortgages: bank vs. broker

Marcella, what't the difference between Countrywide and a bank?

Sasha96 Posted: Nov 26, 2002 05:19 PM

Re: Mortgages: bank vs. broker

We are going through a mortgage broker and are very happy with the service we have received so far (and we are near closing). We didn't have an application fee (it was waved b/c the broker knows my aunt) but fees such as this can possibly be negotiated. It has been very nice dealing with one person and it has been such a help to know that he has taken care of much of the business while keeping us updated (particularly b/c we didn't put 20% down). Everybody is different and that is why there are different options out there. You need to find what you feel will work for you.