Banks vs Mortgage Brokers Understanding the Differences

The Truth About Lending

Welcome to Mortgages with Melinda! Today, we're discussing the differences between banks and mortgage brokers and why you might want to choose a mortgage broker over a bank.

Key Differences:

When you go to a bank, you're limited to the products they offer, which are typically standard options. Banks often don't provide better rates or experiences compared to mortgage brokers.

Why Choose a Mortgage Broker?

Mortgage brokers, like The Truth About Lending and us, have access to multiple lenders. This allows us to find the best program and rate for you. We also offer alternative loan options, such as no income verification loans, and can handle unique scenarios requiring exceptions.

Understanding Overlays:

Banks may have additional requirements, called overlays, beyond standard guidelines for Fannie Mae, FHA, or VA loans. These can include higher credit score requirements or stricter reserve requirements. Mortgage brokers analyze your situation and direct you to lenders that fit your needs without these extra hurdles.

Better Rates and Costs:

Mortgage brokers often beat bank interest rates and closing costs. We work with various lenders, including big names like Rocket Mortgage, who may offer incentives for loans in specific areas, passing on savings to you.

Experience and Expertise:

Mortgage brokers typically have more experience and education than bank loan officers. We ensure you get the best possible rate and a smooth mortgage experience.

Stay tuned to Mortgages with Melinda for more insights on making the best mortgage decisions!

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