Mortgage Lenders vs. Mortgage Brokers
Given a choice between Mortgage Brokers or Mortgage Lenders - choose the Broker!
Why? It boils down to 2 criteria: lower costs and more options (and a bonus 3rd is they provide a better service).
The only reason most people know about mortgage lenders is because of mainstream advertising and marketing. Commercials are fun and entertaining, but the ONLY way for these lenders to cover their media expenditure is to charge higher fees and rates. It's plain and simple. Lenders = Higher Costs!
Your local Mortgage Broker will not have media budgets that need to be covered! Most operate on a flat rate structure that incentivizes them to be competitive. It's a system that keeps both sides honest as the broker will never get paid unless you close the loan. You won't close the loan unless you are a happy customer.
Mortgage Lenders have one source of money to lend - their own. That's it! There is no way to know whether their rate is competitive unless you engage in a lender research process yourself.
By design, Mortgage Brokers represent many different lenders which give you access to more competitive rates and many more options. Having the ability and flexibility to customize a loan to fit your specific needs. More options is better - correct?!
At the end of the day, a local broker is a friend or neighbor. You can have an ongoing working relationship with them through-out your home owning years and know that as your circumstances evolve, they are there to assist you with the mortgage fitting your changing needs!