The choice between a mortgage broker and a bank depends on your personal preferences and needs. Mortgage brokers can offer more loan options because they work with several lenders. Banks, on the other hand, offer their own credit products, but may have stricter guidelines. Consider factors such as available loan options, personalized service, and who can offer you the best terms and rates. Getting prequalified for a mortgage with both a bank and a mortgage broker can help you understand your options and compare offers.
While an offer may change once you submit an actual loan application, prequalifying will give you a good idea of the rates and conditions you can expect. This could help you see right away if your bank or a mortgage broker is likely to offer you the best rates and terms. Most brokers charge a commission, although some charge it to the lender and not to the customer, so it's a good idea to understand the payment structure before selecting the broker that's right for you. Sometimes, the lender pays the mortgage broker (since, after all, it's the broker who does business with the lender). Investopedia's best option for direct mortgage lenders is Quicken Loans, better known as Rocket Mortgage.
If you are confident in your mortgage knowledge and like to control every step of the process, a mortgage broker may not be the best option for you. Even if you're a borrower who wouldn't have trouble getting a mortgage, an agent will meet with you (in person or virtually), discuss loan options, highlight comparison points, and help you make an informed decision. The broker will help you understand the interest rate, closing costs and other details of each offer to find the best loan. If you're looking for a less common type of mortgage, working with a broker can help you find the right lenders directly.
Whichever option you choose, consulting quotes from several lenders and brokers can help you get the best deal for your situation. Many mortgage brokers can also advise you on relevant insurance products to support your mortgage. Due to the relationship between Atomic Brokerage and Atomic Invest, there is a conflict of interest because Atomic Invest directs orders to Atomic Brokerage. Mortgage brokers can access a wide network of lenders, which can increase the chances of finding competitive loan rates.
Most mortgage brokers work with a variety of lenders, including banks, credit unions, and private mortgage companies, allowing them to offer you a wider range of options. Using a mortgage broker to compare market offers can save you a lot of time compared to doing it yourself. If you're an expat, an older borrower, self-employed, have poor credit, or want to buy property that many lenders would avoid, a mortgage broker may be able to help you find a lender that you can't access on your own. Going to a mortgage broker, either to ask questions or to get a mortgage pre-approved, shouldn't cost you anything, although brokers may charge you fees in cases where the mortgage is especially difficult or the borrower isn't particularly creditworthy.
