Real Estate Agent · Chicago, IL · Member since 2017 · 325 posts · 193 votes
Hello BP community!
For a conventional mortgage, is it better to go directly to the bank in order to avoid the lender fees or will the banks charge all sorts of fees as well?
Any advice would be appreciated!
Victor
Banks typically can only offer the products and rates they have in house. A lender typically works with a number of different banks/investors and is able to shop rates and loan programs to find the right fit.
That being said sometimes a local bank or smaller regional bank can make more common sense decision where lenders have to follow the rules of the investors and product guidelines they work with.
Lastly, if you are looking to get something down more quickly banks tend to be much slower when compared to lenders.
How this helps. Good luck!
@Victor So I have a dozen mortgages and by far the cheapest lender option-both in terms of closing costs and interest rates-have been local credit unions. Call a few of your local credit unions and see what your local rates are, you may be surprised.
Fun Fact (FF): Credit unions are non-profit, allowing for low fees and interest rates.
