Mortgage Broker vs. Bank

What’s Best for Your Buyer?


In helping your client find a suitable home, you’ve led them to the halfway point of what could be the largest purchase of their life. Although your hands-on work may be done, your client still relies on you to lead them to the funding that they’ll use to complete the process.

There are two main options to choose from to secure a mortgage: mortgage brokers or banks. Making the right decision here is crucial, as the momentum you’ve built towards a happy closing could be halted by a poor lending experience.

Read more to learn the differences between mortgage brokers and banks, and why using a mortgage broker instead of a bank leads to an enhanced experience for your buyer.

How Mortgage Brokers Work With Your Buyer

If your client would benefit from having a personal home loan advisor, then partnering with a local mortgage broker could pay major dividends for both you and them. Mortgage brokers are experts on each stage of the mortgage process, and will actively share that knowledge to answer questions and soothe concerns.

Mortgage brokers are independent, meaning they aren’t attached to a bank or retail lender. Instead, they match borrowers with loan products offered by wholesale lenders, and have the freedom to partner with whichever wholesale lender provides the best fit. Their ability to shop multiple lenders for loan products ensures that your buyer has access to the best rates and lowest monthly payments available.

Because mortgage brokers collaborate with lenders to serve your client, they can use tech tools to make document collection more efficient, and avoid roadblocks that would normally slow up the process.

Most mortgage brokers close loans in 15 days or less, which means your client moves in sooner and you get paid faster.

How Banks Work With Your Buyer

When it’s time to find a mortgage, many homebuyers assume that the bank will be their best bet. Whether out of habit, convenience or family tradition, buyers who blindly choose banks are met with a lackluster mortgage experience.

Big banks can only offer in-house loan products, and can only be paid when your buyer accepts them. Because of these product restrictions, many mortgage bankers spend their time mastering the handful of home loans they can offer.

A loan offered outside of the bank could be the best fit for your client, but don’t count on the banker to guide them to it (assuming they know about it at all). They can’t profit from it, so there’s no incentive.

However, you may have some clients who ae just more comfortable working with a bank, and that’s ok. If your borrower has no mortgage questions, no interest in securing the best loan available, and no desire to close within 30 days, then working with a bank may meet their expectations.

Mortgage Broker vs Lender? Time to Clear the Air

Contrary to popular belief, mortgage brokers aren’t in competition with mortgage lenders. In fact, it’s the exact opposite. Mortgage brokers act as a bridge; connecting would-be buyers to their mortgage the same way you connect them to their dream home.

There are plenty of wholesale mortgage lenders across the county, and none of them can’t thrive without mortgage brokers who actively submit new loans. As a result, lenders treat mortgage brokers (and your buyers) like high-value clients – some uphold impressive turn time standards and offer free digital tools to promote a better mortgage experience. These advantages benefit you and your buyers too, as they make the loan process efficient and worry-free for all involved.

Ready to offer your clients an extraordinary home-buying experience? Find a local mortgage broker and get started today!