If you are shopping around for a home loan, you have two options, a mortgage broker or a bank. Depending on your preferences and financial circumstances, one may be better than the other. Knowing the differences between a mortgage broker and a bank and the benefits of working with the two is crucial when making such a big financial decision.
Pros of Working with a Mortgage Broker
A Mortgage Broker is a certified financial professional who acts as a middleman between the borrower and the lending institution. Mortgage brokers are responsible for finding a bank or mortgage lender that can provide a mortgage loan with the best interest rate and loan term based on the borrower’s financial circumstances. Mortgage brokers do not fund loans but work with you to secure them.
Related: What is a Mortgage Broker?
Mortgage Brokers Have Access to Hundreds of Loan Products
A direct lender, or bank, can only offer the bank’s loan products. Mortgage brokers, however, have access to various mortgage loans from different lenders. Working with a mortgage broker can give you access to various loan options, with the opportunity of obtaining a loan and interest rate that best suits your financial circumstance.
#1 Mortgage Brokers Save You Time
With a mortgage broker, you must only fill out one application. With a direct lender or bank, you must fill out a new application for every loan.
#2 Mortgage Brokers Can Find the Best Deal
Mortgage brokers represent you and are there to provide loans and expertise in your best interest. Based on your short and long-term goals, mortgage brokers can offer you the best value regarding interest rates, repayment amounts, and loan products.
#3 Mortgage Brokers Have Flexibility and Knowledge
If borrowers have credit issues or need a larger loan, brokers have the knowledge and expertise in the market to know which lenders offer loans that will meet the borrowers’ needs.
Pros of Working with a Bank
Banks, also known as direct lenders, work with borrowers directly. Banks work with borrowers from the beginning, starting with the application process. In other words, the bank that you are working with to obtain a mortgage is the one that will be lending the money.
#1 Banks Could Offer Benefits and Discounts
As a customer, banks could offer borrowers special benefits and discounts. These benefits or discounts can include lower rates, no origination fees, or a discount on closing costs.
#2 Borrowers Have a Direct Connection with the Bank
Working directly with the bank will allow you to communicate directly with the one processing and issuing the loans. You will have the ability to influence what goes on at the bank and the loan process. If there are any issues, you can contact the bank directly instead of going through a mortgage broker.
#3 Banks Have Fewer Fees
Mortgage brokers do not work for free, which adds to the cost of your home loan. Mortgage brokers must disclose these fees upfront so that borrowers know the additional charges. Banks do not have these additional fees.
Take Away
Working with either a mortgage broker or a bank comes with benefits. A mortgage broker or a bank could be a good choice, but it truly comes down to your financial circumstances and needs.
Marimark Mortgage
Marimark Mortgage is based in Tampa, Florida, and proudly serves homebuyers and homeowners in all of Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA, and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.
To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application, or contact us direct.

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