Banks vs. Mortgage Brokers

If you're buying a home, chances are you'll need a mortgage, but did you know there are big differences between mortgage brokers and bank loan officers?

Bank Loan Officers

The loan officers at a bank, credit union or other lending institution are employees who work to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all loans originate from one lending institution.

The loan officer takes your application and works to find a home loan that suits your needs. If your personal credit is approved, the officer moves forward to process the purchase.

Mortgage Brokers

Mortgage brokers are professionals who are paid a fee to bring together home loan lenders and borrowers. They usually work with dozens or even hundreds of home loan lenders, not as employees, but as freelance agents.

Think of mortgage brokers as scouts. They find and evaluate home buyers, analyzing each person’s credit situation to determine which lender is the best fit for that person’s needs. The broker submits the home buyer’s application to one or more lenders in order to find the best product for the borrower, and works with the chosen lender until the loan closes. A good mortgage broker can find a home loan lender for just about any type of credit.

What Difference Does it Make?

Loans officers or “Mortgage Specialists” work for the banks. They aren’t always going to offer you the best interest rate right off the bat because its not the bank’s policy. One of the strategies that banks will employ is to refer you to see a mortgage broker to find a competitive rate so the bank can match it. That being the case, if the bank isn’t willing to offer you the best rate they can without all that extra work, why would you reward them with your business?

A good Mortgage Broker knows the value of repeat and referral business, so offering the lowest rate the first time is a common practice. At First Foundation we offer you our best rate, the first time, every time.

If you choose First Foundation you’ll get access to all the same mortgage products that your local branch has, with the added advantages of way more choice and better rates right up front. Makes it an easy choice, doesn’t it?

Complete an Online Mortgage Application or learn more about our Online Mortgage Broker Products.