Is it Easier to Get a Home Mortgage Loan with a Broker or Banker?

Times are tough especially those trying to purchase a new home with blemished credit; so would life and loan prospects become easier if you were to trust a mortgage broker or a banker?

The interest rate will be the same whether you use a broker or deal directly with the bank but the broker knows all the latest greatest programs, specialty lenders, qualifying clauses and in’s and out’s to get you connected with a lender that can approve you.

You see, if you have “A” credit then you really can go just about anywhere you want to get a home mortgage loan. If you have blemished credit you have to hunt and track down that 1 lender who is willing to give you a home mortgage loan with a decent interest rate. A mortgage broker has the inside track on who will be willing to underwrite your loan and which lenders are a waste of time to even ask for a loan.

But there are downsides to mortgage brokers; many of them have a bad name because of predatory lending however, many of the programs and bad financing loans are no longer in play and were eliminated due to the financial downfall of many institutions. Additionally, once you supply all your information to the mortgage broker you will not deal directly with them anymore – the lender then takes the lead and the mortgage broker collects his/her commission.

Finally, the mortgage broker may not have your best interest at heart – it’s simply the commission that they are fighting for. Their job is to find you a home mortgage loan that you can qualify for; it may not be the best program for you and many times the mortgage broker will not explain all the if, and or what-if’s.

So again, how do you know if you should go to a mortgage broker or banker? Well first, to protect against the less reputable brokers select a member of the NAMB (National Association of Mortgage Brokers).

Next, take a look at your credit report and determine how “blemished” your scores really are; if below 620 you should probably think about a broker who can put you in contact with specialty programs and lenders willing to take more of a risk. If your score is closer to 700 then why not try a banker? Go ahead and contact a banker to start your application for a home mortgage loan and see what happens.