Comments on: WHAT IS THE DIFFERENCE BETWEEN GOING TO A BANK FOR A HOUSE LOAN VS. A MORTGAGE COMPANY?

By: chatsplas@sbcglobal.net

chatsplas@sbcglobal.net — Sun, 15 Nov 2009 23:25:55 +0000

Shop around and get the best deal. Working with a bank, you have local people involved. But the majority of loans are sold, not retained by the bank, and sometimes even the servicing of the loans (collecting payments) is sold.
The difference is if you go to a broker who is getting a fee for helping you find a mortgage, paid by company putting up the money.

Save up for your down payment, because if you can put down 20%, you avoid paying PMI. Work on your credit, because that affects the interest rate and whether you get a loan.

By: kemperk

kemperk — Sun, 15 Nov 2009 22:42:35 +0000

if you go to a specialty jewelry store, you will only find things they import or make; if you go to a generalist store, you will see wider
inventory.

A bank sells only their bank policy designed
types of loans. A MB rep’s banks across
the US. Of course, most banks make available the same types of loans
but some offer hybrids; different
fixed interest rate loans depending on the
credit scores and amount put down,
equipment leases,
etc.

Hope that helps.
[the only negative thing about
MBs is that the borrower winds up paying them out of the loan for their
searching for the best loan.]

By: bonsai

bonsai — Sun, 15 Nov 2009 22:15:50 +0000

No difference, most banks are just mediators anyway. If you want the best deal for you, call 30 mortgage companies with your details and let them give you an offer.
This way you learn about it best.