Mortgage Broker vs. Bank: Why Comparing Lenders Matters

When you need a mortgage, you can go directly to a bank or retail lender, or you can work with a mortgage broker. Both can get you a loan. The difference is how many options you see along the way.

How a bank works

A bank or retail lender offers its own loan products, with its own guidelines and pricing. If your situation fits their box, that can work well. If it does not, you may be told no, or offered terms that are not the best available to you.

How a broker works

As a broker, I work with a network of national lenders and investors. I take one application and compare how different lenders would handle your loan, then recommend the option that fits your goals. You still get one point of contact from start to finish.

Why that matters

• Pricing and fees vary from lender to lender, sometimes more than people expect

• Guidelines vary too, which matters for self-employed borrowers, investors, and anyone with a unique situation

• Some lenders specialize in certain loan types, such as jumbo, VA or non-QM programs

• If one lender is slow or says no, there are other options

Is a broker more expensive?

Not necessarily. Brokers are compensated through the loan, and broker pricing is often competitive. The best way to know is to compare Loan Estimates side by side, which I am always happy to walk through with you.

What stays the same

Whether you use a bank or a broker, the core process is similar: application, documentation, appraisal, underwriting and closing. The difference is having someone whose job is to look across the market on your behalf.

The bottom line

A mortgage is one of the largest financial decisions you will make. Seeing more than one option, explained in plain English, helps you make it with confidence. If you would like a second opinion on a quote you have received, I am happy to take a look.

This article is general information, not a commitment to lend. Loan programs and guidelines change, and all loans are subject to credit approval and underwriting. Jason Valant, NMLS #2780983. DNVR Lending, LLC, NMLS #2403751. Equal Housing Opportunity.