Most people get a mortgage from wherever they bank, because that is the number they already have. It is worth understanding what you are choosing.
We are a broker, so we have an interest here. We will try to be fair about it, including where a bank is the better answer.
The structural difference
A bank lends its own money under its own guidelines. Apply there and you are being evaluated against one rulebook. Fit it, and things go smoothly. Miss it in one place, and the answer is no with nowhere else to go inside that building.
A broker does not lend money. We work with many lenders and place your loan with whichever one fits your situation. One application, one set of documents, and access to a range of guidelines rather than one.
Why one rulebook versus many matters
Most borrowers are not textbook. Self-employed with real write-offs. Recently changed careers. Buying a two-family. Investing through an LLC. Retired with assets but modest documentable income. Recovering from a credit event a few years back.
Every one of those situations is workable, and the lender who handles it well may not be the one who handles the next one well.
When a bank says no, that is the end of the conversation. When one of our lenders says no, we go to the next.
Product access
Programs like bank statement loans, DSCR loans, asset depletion, and various non-QM options are generally not offered at retail banks. They come through wholesale channels brokers work in.
If you are self-employed or investing, this is often the entire reason to use a broker.
How brokers get paid
Fair question, and you are entitled to a clear answer.
Brokers are compensated on the loans they place, and that compensation is disclosed to you in writing on your Loan Estimate. It is regulated, and it cannot vary based on the terms of the loan you are placed in.
Ask any lender, broker or bank, to walk you through their compensation. Anyone unwilling to explain it plainly is telling you something.
When a bank is the better choice
We will say it directly.
If you have a strong existing relationship with your bank and they offer relationship pricing you cannot get elsewhere, that can be real money.
If your situation is genuinely straightforward, W-2 income, strong credit, standard purchase, the advantage of shopping shrinks. You may do fine either way.
Some banks offer portfolio products they keep on their own books with flexibility that does not exist in the wholesale market. If you have found one that fits, take it.
What to actually do
Get a Loan Estimate from your bank. Get one from us. Compare them side by side. The format is standardized specifically so this comparison is possible.
Look at the full picture, not just one line. Lender fees, credits, and the terms on offer.
If your bank wins, take their deal. We would rather you make an informed choice than a default one.
Trinity Lending Company | NMLS #2762052 | Equal Housing Opportunity