Banks Versus Mortgage Broker

Why Use a Mortgage Broker instead of a Bank?

Banks only deal with one lender. We deal with multiple lenders to locate the best rate for you, based on your credit rating and loan needs. When you find the right mortgage broker you will receive service and knowledge that is unmatched by your typical commercial lender.  Unlike a commercial lender who offers all types of financing, a mortgage broker has only one job and that job is to provide the very best mortgage financing for you.  

What services does a Mortgage Broker provide?

We assist with the pre-approval process by collecting and reviewing your credit history, income, bank accounts and all other assets. We'll input all your information into an automated government system to determine the best loan options based on your individual situation. We'll answer your questions and help you find the best loan for you, based on your financial needs and credit situation. We'll do the research and the paperwork, and help you through the entire mortgage process.

Are rates more important than service?

Many borrowers only focus on an advertised rate and not the service they will be getting throughout the mortgage process.  Most lenders and brokers have similar rates based on industry standards, but these rates change on a daily basis, good quality service does not.  If you shop for someone who provides a high quality of service, then you can expect them to get you the best rate for you at your closing.

Are closing costs cheaper when using a bank?

A common misconception is that banks offer cheaper closing costs than brokers do.  The Mortgage Outlet has been successfully providing mortgages for over 20 years and has been able to provide its borrowers with closing costs that are competitive to banks.  As a wholesale broker, we get paid by our lenders, so broker points or broker fees are not charged, keeping our closing costs low.

What is the difference between a pre-qualification and pre-approval?

Do not confuse a pre-approval with a pre-qualification.  Too often this is where consumers get into trouble.  A pre-qualification is basically a worthless piece of paper given to a potential borrower that is subject to confirming their credit history, income and assets.   A pre-approval much more meaningful.  Basically a borrower applies for a loan prior to finding a house.  After reviewing and confirming your credit history, income, and assets, a pre-approval is issued through Fannie Mae or Freddie Mac automated underwriting systems.  Once you have this pre-approval all you need to do is find a house.

We are proud of our customer testimonials and superior customer service. Call 631-589-3600 to learn how we can help your with your mortgage.