A Mortgage Broker and a bank both sell mortgage loans to borrowers but there are many differences in the way they operate. So, how do you choose where to go for a loan? It all depends on what type of loan you need.

The biggest difference between a broker and a bank is the number of lenders and programs they have access to. A bank is typically limited to the rates and programs that they offer themselves, while a broker has access to dozens (and in some cases hundreds) of different lenders. Generally speaking a broker is able to offer a wider variety of loan programs, and can rate shop for you.

Local commercial or retail banks only offer their own mortgage products. If they do not have a loan for a home buyer, rather than searching for a suitable loan from other lenders as a mortgage broker would, they would have to decline the loan application, forcing the home buyer to find other lenders. This can be time consuming and be costly if financing is not secured in a timely manner.

Because brokers have access to such a wide array of mortgage products, they can often find a better loan for you than if you went directly to the bank.

 

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