Banks or Mortgage Company

2 Replies

Afternoon BP,

I have a question, should I use mortgage company on a singlefamily investment property, or should i ask is there anything wrong with using mortgage companies? Banks are asking for 20%-25% down for singlefamily investmemt property. I spoke with mortgage company that said they only ask for 15% on invesment property. Ive used bank before but never mortgage cpmpany. Any advice or suggestions from past experiences? Plz reply

Full disclosure I was a mortgage broker 7 years ago.

Unless you have a close personal relationship with a local bank and have most/all of your assets deposited there then a mortgage broker is your best bet. The reason is that banks offer you higher retail rates and one set of underwriting guidelines whereas a mortgage broker can use the exact same bank and get you a lower wholesale rate and lower fees. A mortgage broker is also versed in the myriad of loan programs offered by multiple lenders and can direct you to the programs that best suit your needs.

As you mentioned in your post, the mortgage broker/company is offering you far less of a down payment, probably because they know which lender will be best given your particular situation, so this should reinforce the benefits of using a mortgage broker.

Good luck!

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