Pacific Escapes Real Estate, inc

A mortgage broker is a professional who serves as a go-between for borrowers and lenders. They collaborate with a number of lenders to help borrowers find the best mortgage product for their needs. Mortgage brokers don’t lend money themselves; instead, they help people find and get loans from lenders.

Pros of working with mortgage brokers

• They can bring several proposals from different lenders, and usually, they will bring you the options that will best fit your needs
• Working with a mortgage broker will be less time-consuming for you because they will be doing the extensive work of finding the best deals for you

Cons

• Mortgage brokers typically charge a fee for their services, sometimes covered by the lender, and other times the cost must be covered by the buyer

A bank, on the other hand, is a type of financial institution that provides a variety of financial products and services, including mortgages. Banks may offer their own mortgage products or mortgages from other lenders.

Pros of working with a bank 

• You might be able to find good mortgage rates if you look in different banks 
• Banks will usually give good deals to their existing customers, plus if you already have a relationship with a specific bank you will be able to get your questions answered faster

Con 

• You will need to do the research yourself, set spreadsheets from different bank rates,  do the work to find the best options, best terms, etc

The main difference between a mortgage broker and a bank is that a mortgage broker is usually a third party, whereas a bank is a direct lender. So, a mortgage broker may have access to a wider range of mortgage products and lenders than a bank, which may only be able to offer the mortgage products it has.

Another distinction is that mortgage brokers often charge a fee for their services, whereas banks do not. This fee is typically paid by the borrower at closing and may be a percentage of the loan amount or a flat fee.

In short, a mortgage broker is a professional who helps people find and get the money they need to buy a home. On the other hand, a bank is a financial institution that offers many financial products, including mortgages.