Mortgage Bankers vs Mortgage Brokers for loan

Private Lending & Conventional Mortgage Advice
11yFollow

Mortgage Bankers vs Mortgage Brokers for loan

Matt Rasich
Chicago, IL · Member since 2014 · 16 posts · 1 vote

Currently these are my options for my first property, which will hopefully be a multifamily property. I've had two friends use mortgage brokers and liked the experience but what is your take on either?

Do you prefer one over the other? Has anyone used both options? 

Right now I've got an appointment with two banks to interview them but I'd like to see what your experience was like. I'm assuming the experience is based upon that banker/broker's sole knowledge -- or will most institutions be alike?

0Reply
16 views

3 Replies

Jump to latestLatest
  • Matt Rasich
    OP
    Chicago, IL · Member since 2014 · 16 posts · 1 vote
    11y

    The properly will be located inside the city of Chicago if that adds to the equation for bankers.

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Matt Rasich

     - I only use brokers, and here is why.  Not all purchases and loans are perfect, and something can come up mid deal that will trigger your loan to be denied.  With a banker if their bank won't underwrite it you need to start all over with someone who will.  With a broker they can shop it to other banks and get someone who will underwrite it with no time lost.

    I had a zoning issue come up and the bank my broker was using started to get iffy about it, he had is shopped out to 10 other banks in a day or so and found someone who would still underwrite it and we closed on time.  

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    1Reply
  • Jerry Padilla
    Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
    11y

    @Matt Rasich

    Mortgage Brokers many times charge additional fees - origination fees, whereas not all banks do. 

    Mortgage brokers and actually many banks don't have the option to specifically follow Fannie Mae or Freddie Mac guidelines - in my experience, sometimes making the guidelines more strict. 

    As @Brie Schmidt said if there are issues that come up and the deal can't close a broker can still get the deal do e faster than starting over with a new lender. 

    You need someone that most importantly is knowledgable about investment loans. 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free