Parker Mortgage Tip: Use a Bank or Mortgage Broker for Your Next Home Loan?

Today’s Parker Mortgage Tip will address the difference between a Loan Officer from a Bank and Colorado Mortgage Brokers.  Not knowing the difference could cost you tens of thousands of dollars on your next Parker Mortgage or Colorado Home Loan!

When I say “Bank”, I’m referring to any lending institution where you can go for your Parker Colorado mortgage.  This would include lenders like Wells Fargo, Chase, TCF, Credit Union, etc. to name a few.   Colorado Mortgage Brokers are individuals or firms that serve as an individual agent for the borrower and the lender.  I am an example of a Parker Colorado Mortgage Broker.

There are 4 Major Differences, but I’ll discuss only the first 2 right now.

Compensation:

Banks pay their Loan Officers a Salary.  Banks usually advertise that their loan officers are salaried.  Banks want to infer that they aren’t motivated by the almighty dollar.  They want you to believe that they are looking out for your best interest when you apply for your Parker mortgage.  This isn’t necessarily true or accurate picture.  Do you remember all the negative media that the well known banks have received for the past 2 years for placing people in “Bad” loans?   Do you really think that they have changed their mode of operation after all these years just to give you now a “Good” Parker Mortgage? 

Colorado Mortgage Brokers are usually Commission Only.  Just because Colorado Mortgage Brokers are paid via commission, doesn’t necessarily make them greedy/dishonest.  Most of the Parker Colorado Mortgage Brokers that I know are brokers because they prefer their “independent” work and life style.  Let’s put it in simple terms.  “Have you ever had a “Bad” boss”?  Or as a manager/supervisor, “Have you ever gotten tired of dealing with employee problems’?  Colorado Mortgage Brokers are just like you.  They enjoy their freedom and job flexibility.  Most people don’t realize that Colorado Mortgage Brokers have the flexibility to structure a Parker Mortgage or Colorado home loan without interference from the lender.  This is crucial because we can help people get the “Right” Colorado home loan.  Banks normally have a certain profit margin; otherwise they won’t do the loan…  Colorado Mortgage Brokers can still do a Parker loan even if they make only a little bit of money.  We know that the borrower will probably refer us to a family member, friend, or co-worker because we go took great care of them when the Big Banks wouldn’t.  It’s all about doing the Right Thing! 

Loan Programs: 

Banks have Limited Mortgage Programs.  A Bank can only offer a Parker Mortgage or Colorado Home Loan that they have.  If they don’t have what the correct Parker loan for you, do you think that they will tell you that and refer you elsewhere?  Or would they just offer you another in-house loan that they have, just to keep your business?  The sad part is that you may not know that you should/could have had a better Parker mortgage or Colorado home loan until long after you closed.     

Colorado Mortgage Brokers have Unlimited Mortgage Programs.  Since we are “Independent”, Colorado Mortgage Brokers can choose from among many lenders and get you the “Right” Parker mortgage or Colorado Home Loan.   Lenders have different programs.  Additionally, they usually have better interest rates than you would get from a bank.  Wouldn’t you rather get a Parker mortgage or Colorado home loan that fits your particular situation; not just what the bank has available? 

Don’t be fooled, these first two differences may not seem significant but they are.  If you are like everyone else, I’m sure that you saw all the negative headlines the past 2 years about the greedy banks and their overpaid CEOs and staff who took advantage of their borrowers. They have taken billions of dollars of “Bailout Funds” and most people still haven’t seen any real change.  It DOES matter who you get your Parker mortgage and Colorado home loan from. 

In my next Parker Mortgage Tip, I will address the other two major differences.  You will see even more clearly how your decision on who you use can either save or cost you a lot of money on your next Parker mortgage or Colorado home loan.