Brokers Are Better?

What Type of Loan Officer Should You Work With?

If you’re looking to buy a home, chances are you’ll be taking out a loan — which means you’ll be working with a loan officer. But not all loan officers are the same. So, what type should you work with, and what are the differences?

1.

Retail Loan Officer

This is probably the type most people are familiar with. A retail loan officer works at big banks like Wells Fargo, Chase, or Bank of America. While they may offer competitive rates, they tend to have very strict lending guidelines — which means fewer people actually get approved. On top of that, you’re only getting access to that one bank’s programs and rates. If you don’t fit their criteria, you simply don’t get the loan.

2.

Direct Lender

A direct lender works at a bank or company that specializes only in mortgages. They’re a step up from retail lenders in terms of flexibility. Their guidelines might be slightly more accommodating, but you’re still limited to just that one lender’s offerings.

3.

Mortgage Broker

This is where things open up. A mortgage broker works with multiple lenders — for example, at my company, we work with over 150 banks. That means I can shop around to find the best rate and the best fit for your unique financial situation. Because every lender has its own guidelines and overlays, going through a broker gives you a much better chance of getting approved — and potentially at a lower rate.

Bottom line: Every buyer’s situation is different, but in my experience, working with a mortgage broker gives you the most options, the best shot at qualifying, and the opportunity to lock in the lowest rate possible.