[Nella]

I feel silly posting a question that I should probably already know the answer to, so please forgive me!

We’re about to start the process of looking for our next home.

The next step is an approval.

We used my husband’s bank last time we purchased, but it was out of town and a bit of a hassle.

I’m wondering if a bank or mortgage lender would be better.

I know very little about mortgage lenders or that process.

I’m not sure if it matters but we have a house that we’d be selling also…

I’m not sure if contingencies are different for lenders vs. banks.

I never dreamed that we’d be able to purchase a home, much less look for an upgrade…

I’m trying to learn financial stuff but so much is still very much out of my wheelhouse.

[Jamie]

You should definitely shop around and speak with a few lenders/brokers.

Ask your friends/family who they have used.

I prefer local lenders/brokers personally…they make me more comfortable.

Fixed rate mortgages from a bank/lender/broker are most often written to Fannie Mae or Freddie Mac guidelines so that the note will be salable on the secondary market (that only means the company you pay might change at some point, your loan terms will remain the same).

The above is only speaking about conventional loans.

There are other loans available like FHA/VA, to name a couple.

Banks and brokers consider contingencies the same (if you must sell in order to qualify for a new home or if you need the funds to buy the new property.

You can truly compare lenders by reviewing loan estimates (used to be called good faith estimate).

This document will show you all the costs associated with the loan you are speaking to them about.

Ask what type of rate locks they offer and if they have float downs.

That a few things to think about. Good luck

[Jill]

I would also recommend using a mortgage broker. I’ve found they pretty consistently can get better rates and lower fees compared to going thru a bank.

They will have many more options they can shop to help find you the best loan.

[Kirsten]

I used to think that working directly with a bank was the best move. When I bought my first (current) house, I was pretty obstinate about wanting to use my credit union that I had a long-term relationship with.

I gave them a shot and tbh it was a real hassle to get through to my mortgage professional.

My real estate agent (who was amazing and a true professional) wanted me to work with a local mortgage broker that she generally used.

I was suspicious of their relationship and was concerned they were in cahoots somehow to give me a bad deal based on advice I have read.

Turned out I was completely wrong.

The broker got me an amazing deal – way better than my credit union.

She was also present for the closing, which made everything much easier.

When mortgage rates were at their nadir, I refinanced through her and got an amazing rate that was better than any I was able to get online.

I’m glad I did my research because it helped me realize what great service I was getting from my local broker.

[Beth]

The bank only has their own products to use, a mortgage lender usually has more options, and can shop your loan for the right product.

It’s a process to find the right one!

They can become a very big part of your real estate future

[Roberta]

Use a mortgage broker. It should be no cost to you. They have access to many more loans than just “a” bank. They only have access to products they offer.

Let them know you want/need to keep your inquiries down.

Therefore, you dont want them to run your credit anymore than they have to.

Also, you want all credit run within 30 days, to ensure they only hit your inquiry section of your credit report 1x.

Good Luck!

[Joe]

A mortgage broker is better in my opinion. They work with several banks.

What state are you located?

I’m a realtor and I could recommend you some

[Author]

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