In a perfect world, the experience and skill of an excellent, highly trained professional loan officer will make the choice of selecting between two lenders easy once you have the facts.

Consider this tutorial your Hall of Fame Coaching Lesson 101.

Is There REALLY A Best Bank To Get A Mortgage Loan From?

Glad you asked because I happen to think so.  More on that in a minute.  Be forewarned though, the answer may surprise you because…

It might not actually be best to get your mortgage loan from a bank.

However, this post is about helping YOU know how to decide, for yourself.  Of course, I’d love to have your business, but I’m not always everyone’s best answer.  While I’ll fight hard to earn your business, I’ll also be the first to tell you, that’s a great deal, stick with it.

I’m a visual learner, so I’m going to use a movie to help me tell this story.

Who creates better storyboards to make you rethink your life than Hollywood?  Movies paint pictures for me that I might not otherwise see.  Titans of the Silver Screen spell out the good guy, overemphasizing the bad guy so clearly.

Frankly, only Hollywood could turn the act of borrowing money into the classic, “It’s a Wonderful Life.”

“It’s a Wonderful Life.” Capra, F. (Producer and Director). (1946) Public Domain

Sure that’s how Hollywood portrays the story.  But wasn’t it shady brokers who created the housing debacle?

A fair question.  And the answer is yes.  And no.

Without getting into the weeds, significant reform took place across every platform of lending after 2008.  The education, training, licensing, and accountability in place for lenders and loan officers across the board could arguably be more stringent than for Real Estate Agents.

What that means for you is that anyone you select from this point forward is held to a higher standard than either Mr. Potter or George Bailey.  Or anyone you dealt with prior to 2008.

At Service First Home Loans we have taken that responsibility to the next level.  We ARE highly trained mortgage professionals, not just registered individuals.  We have passed the rigorous testing processes and demand continuing education requirements above the industry standard.  If you are ready to experience the difference, we would be honored to meet your home lending needs.

Back To The Question, Is It Better To Get A Mortgage From A Banker Or Broker?

I’ll admit.  The wonderful life visualization wasn’t totally fair.  Hollywood paints a compelling picture of most anything being better than the banker, Mr. Potter.  The truth is knowing if it is better to get a mortgage from a banker or broker varies depending on your needs.  

Better Get a Mortgage from a Bank they said, it’ll be fun they said.

The established relationship you have with your bank, and the amount you have invested with your bank or credit union could be an advantage.  However, if you are not an elite, highly invested customer with that kind of leverage, it may be to your disadvantage to get your mortgage from the bank.

WHY?

So is it better to get a mortgage from a broker then?

Before digging deeper into the answer for your situation, it is crucial that you know there are actually more lenders to choose from than a bank and a broker.  Without all the facts, I could easily steer you into a direction.  Seeing all the options helps you to weigh the choices better.  There are actually four types of lending institutions.  In reality, I could refer you to a mortgage loan from any of the following.  And this is a shortlist.

If you skipped the infographic STOP – go back and review, because it will really help explain the four the types of lending institutions.

Moving on then.  In the next section, you will find a breakdown of the types of lending scenarios generally offered at these four kinds of institutions.  Which will help you weigh out the pros and cons of each.  Getting you closer to the answer if it is better to get a mortgage from a traditional bank, a mortgage banker or a broker, or an internet lender.

Investigating The Pros & Cons Behind The Million Dollar Comparison –

BROKER VS. BANK VS. BANKER VS. DIRECT LENDER

The knowledge that you have more than a bank, banker, or broker to get a loan from might seem overwhelming.  Generally, I agree that less is more.  In this case, more is better.

The below comparison chart shows you how the Local Small Business Bankers and Brokers, Banks/Credit Unions, Internet Direct Lenders/Brokers vary.

And don’t let local small business fool you into thinking poorly run.  It’s more likely the highly coveted local secret.

There are different licensing requirements and abilities.  The differences can affect more than just your customer experience.

Understanding how these lenders vary will help you determine if it better for you to get a loan from a mortgage banker or broker, internet direct lender, or bank.

Surprised by what you didn’t know you didn’t know?

Does it come as a shock that some of the people promising you the best of the rocket-fast services may have no prior mortgage experience?  That you are acting like their on the job training experience.  Or are potentially only registered but not licensed loan officers acting as a jack of all trades?

Does it make you feel comfortable knowing that your loan officer might be sitting in an open cubicle next to his buddy talking about your financial life at the bank or internet lender of choice?

This is where the Hall of Fame Coaches level up.

Best Ways To Find A Mortgage Broker (Or Banker) Near Me

So, now that you have a much better understanding of the multiple lending options available to you, have you decided to seek out your local bank or credit union?  Does that high advertising budget from an internet direct lender still appeal to you?

Or, are you asking how do I find the right mortgage banker or broker near me?

Unfortunately if you Google the term mortgage bankers, you will often get mixed results, as the term is mostly misunderstood, even by industry professionals.  But a great place to start is by asking one of the other hands involved in a mortgage loan transaction.

Stop into a local banker or broker shop

This might seem intimidating, but as our moms used to say, they are more afraid of you than you are of them.  Okay, maybe that’s not exactly the right analogy.

But, these highly trained mortgage professionals would love to have you stop in and ask some questions.  Promise.  Just give them a minute to pick their jaws up off the floor, as walk-in traffic is uncommon.  But it’s totally acceptable to do!  Tell them Michael Chalker sent you.  🙂

Ask your Realtor

One of the two most important people on your home lending team is your Realtor.  If you need help figuring out who the right Realtor is for you, check out our Choosing the Best Mortgage Home Team for Me series.

Many people are not aware that Realtors have preferred lenders.  They are thrilled to refer you to their top choices, even if your objective is simply to refinance at this time.

It’s good for business.  You may have to exchange an email address for a stellar lender.  But they know if you love your lender, you will not forget who referred you to them when it’s time to buy or sell.

Call a Title Company for a reference

A widely misunderstood and overlooked key player in every mortgage transaction is the role of the Title Company.  We take a deep dive into the role of the Title Company in the Choosing the Best Mortgage home Team for Me Series.

For our purposes here, if you want to get to the best of best, call and ask at a local office who they would use.  Or better yet, refer their mother to.

These guys work with EVERYONE, from the absolute best and the WORST of the WORST.

Banks and Credit Unions

I’m sure I don’t need to tell you how to find your bank or credit union.

Thanks Captain Obvious.  You may not be aware, however, that many of them have mortgage lending divisions.  These are not located at your local branch.  But they might be next to a grocery store or in a strip mall.

If you already have a loan with your bank, you can call the number on your monthly statement, and they can sometimes help.

Finding an Internet Direct Lender or Broker

If you just can’t resist that big advertising budget and promises to have a speedy loan transaction, please just know that they are the last in the order of priority list based on my professional experience.

BTW…my experience?  That’s over 27 years at the writing of this article by the way.  Oh and I have apps, and easily upload your paperwork just like they do, just not the advertising budget to blast it everywhere.

I’ve said my peace.

Now, for an Internet Direct Lender or Broker, you can easily find them through a quick Google search for Quicken Loans, Zillow, or Lending Tree.  They use their advertising dollars at the top of the search feeds as well as television ads.

What Does A Lender Do – INTERVIEWING MORTGAGE LENDERS

As you can see from the infographic listed above, there is more involved in the world of mortgage lending than you are taught in Econ 101 or the social media feed.  So, as you prepare for interviewing these mortgage lenders, you are probably wondering, what does a lender do anyway?

A quick study says that the lender asks about your credit and banking information, requests proof, makes you sign some paperwork, tells you it will be a few weeks while someone else approves it.  Then, you’ll close the loan and be done with it.

While that is true, the analogy is oversimplified, to a fault.

Albert Einstein said, “everything should be as simple as possible, but no simpler.”  I go into extensive detail about my role as a loan officer in my post Hopes.Fears.Dreams.Goals.Boundaries.

To summarize here, though:

• It is my job to ask very detailed questions about your home journey.  
• Then I ask questions behind the questions.

Most loans can be structured in at least two or possibly three programs.  It makes little difference to me.  I cannot legally push you towards one program over the other for my benefit.

However, it may make ALL of the difference in your world.

How to Pick the Right Mortgage Lender and Loan Officer

I am all in favor of saving as much money as I can.  Let’s just say, I have a nickname that sounds really similar to flight pass.  But like Einstein’s quote, I believe everything should be as inexpensive as possible, but not necessarily the cheapest available.

When I was a young man, freshly out of the Marine Corps, my budget for the entire month resembled my current house payment.  And even though I can afford much more now, being frugal has stuck with me.  But along the way, I realized that replacing cheap stuff frequently didn’t save me any money in the long run.

The initial investment may have cost more, but the longevity and reward of those investments were often worth it.

This is how I approach the lending process.  One of the most stressful, emotionally difficult life scenarios involves your home.

There are times that my rates and fees are the exact same as the discount lender down the street and other times they are not.

When you are considering how to pick the right mortgage lender and loan officer, I suggest that you consider this:

Finally, There Is Confidence – “In The Know”

How To Select The Best Bank To Get A Mortgage Loan

More than once in my career, I have said, I cannot provide the best deal for you.  Your bank will do fine.  That broker is offering a screaming deal.  That refi is a slam dunk, go ahead, take that rate from Quicken, or the guy I perceive as Mr. Potter.  That is how I sleep at night.

At the end of every day, I remind myself that you may not remember what I said, you may not remember what I did, but you absolutely remember how I made you feel.

If I’ve done my job that feeling for you is, empowered, educated, hopeful.  Finally, there is confidence in knowing how to select the best bank to get a mortgage loan, even if it’s not at a bank.

We don’t do life with businesses, we do life with people.  So the people we do business with matters in life.