Mortgage Broker vs. Bank: Where Should You Get Your Next Home Loan?

Getting a mortgage can be intimidating for even the most financially secure of homebuyers. Without financing, the home of your dreams will likely be out of reach, and the sheer amount of money involved makes getting the most favorable terms available a necessity.

Some would-be homeowners go directly to banks and other lending institutions to get their mortgage loans, while others prefer to use an independent mortgage broker to find the best deal. Either method can work, but the one that works better for you depends on your particular preferences and expectations from the mortgage process.

Going directly to a bank for a mortgage loan makes the most sense when you already have an extremely strong relationship with a financial institution. Banks have latitude to offer you special deals if they want, and if you already have an array of deposit or loan accounts with a particular bank, it will sometimes offer you incentives that it wouldn't give to someone coming in for the first time. In particular, discounts on closing costs, or even more favorable interest rates, aren't unheard of, especially for premium customers with extensive banking relationships.

Source: Fool.com