One rate sheet, or hundreds.
A bank is one company selling its own products. A broker shops many lenders against each other for your file. Same paperwork on your end.
Get a quote from both and compare the Loan Estimates side by side.
The difference in one paragraph
When you walk into a bank, you are talking to a company that sells its own mortgage products. If you fit their guidelines, you get their rate. If you do not fit, the answer is no, and you never learn that a different lender would have said yes.
A broker is not tied to one company's products. I take your file to many lenders, compare what each will do with it, and place it where the combination of eligibility and price is best. That difference is largest exactly when your situation is not textbook: self-employment, credit history, a unique property, or an unusual income structure.
This is not an argument that banks are bad. Sometimes a bank genuinely offers the best available deal, particularly with a relationship discount. The argument is narrower and harder to dispute: you cannot know that without comparing, and comparing costs you nothing.
What the difference buys you
More places to land
Lender guidelines vary widely on credit, debt ratios, self-employment, and property types. More doors means more chances that one of them fits your situation.
Competition on price
Lenders competing for your file behave differently than one lender presenting its rate sheet. That pressure works in your favor.
Overlays get bypassed
Banks add their own stricter rules on top of agency guidelines. A broker can route around a specific overlay by choosing a lender that does not have it.
One application, many options
You provide documentation once. The shopping happens on my side, not by you repeating the process at four different institutions.
Specialty products
Bank statement loans, DSCR, non-QM, and construction financing often live outside a typical retail bank's menu entirely.
A person who stays reachable
You get the same phone number from the first conversation to the closing table, rather than a call center and a rotating cast.
Fair questions about brokers
Reasonable things to ask, answered straight.
How does the broker get paid?
Broker compensation is disclosed on your Loan Estimate and closing documents, and it is paid either by the lender or by you, not both on the same transaction. Ask any broker to walk you through exactly how they are compensated on your file. A straight answer should be immediate.
Does using a broker cost more?
Not inherently. Brokers frequently access wholesale pricing that is not available at a retail branch, which is why competitive quotes are common. The only way to know for your file is to compare Loan Estimates.
Is my bank relationship worth something?
It can be, and some banks offer genuine relationship discounts. That is a legitimate reason to get their quote. It is not a reason to skip getting others.
Who actually funds my loan?
A wholesale lender funds it, and your loan may later be sold or transferred for servicing, which is also true of loans originated at banks. Where you send payments can change over time regardless of who you started with.
How to compare offers properly
- → Get your quotes within the same few days, since pricing moves
- → Compare the Loan Estimate forms, not the rates quoted verbally
- → Look at page 2, total loan costs, not just the interest rate
- → Check whether points are being charged to reach the quoted rate
- → Confirm the quotes assume the same loan amount and down payment
- → Multiple mortgage inquiries within 45 days count as one, per the CFPB
How this goes
One conversation, one file
We talk through your situation and gather documentation once. Nothing about your side of the process is harder than working with a bank.
I shop it against the market
Eligibility first, since the cheapest lender that will decline you is worth nothing, then price among the lenders that genuinely want your file.
You compare and decide
You see the options. Take my quote to your bank and compare the Loan Estimates. I would rather you check than wonder.
Common questions
Is it harder to close with a broker? +
No. The underwriting, appraisal, and closing process is fundamentally the same, because the same investors and the same rules sit behind most loans. What differs is who is choosing the lender and how hard they are working to place your file well.
Will my loan get sold? +
Possibly, and this is equally true of loans originated at banks. Servicing transfers are routine in the mortgage industry. It does not change your rate, your term, or the balance you owe, only where you send the payment.
Do brokers work with people who have credit problems? +
That is where a broker is most valuable. Guidelines on credit scores, past credit events, and debt ratios vary enormously between lenders. A file that is impossible at one company is routine at another, and finding that company is the job.
What if my bank matches the quote? +
Then you got a better deal because you shopped, which is genuinely a good outcome. I would rather you save money than feel obligated to me. Just make sure the match is on the Loan Estimate, not on a verbal quote.
How do I know I am getting a good deal? +
By comparing Loan Estimates from more than one source, on the same days, on the same loan amount. That standardized form exists precisely so borrowers can compare offers accurately, and it is the only comparison that means anything.
Who do I call with questions? +
Me, directly. Rich Preston at (448) 202-7711 or rich@prestonlending.com. Ask me anything before you apply. There is no cost and no obligation.
Get a second quote. It costs nothing.
Compare mine against your bank's on the Loan Estimate. If theirs is better, take it.
Mortgage broker compensation is disclosed on the Loan Estimate and Closing Disclosure as required by federal law. Loan terms, pricing, and availability vary by lender and are subject to change. Loans may be sold or transferred for servicing after closing. Comparison of offers should be made using Loan Estimates issued for the same loan amount, property, and time period. This page is for informational purposes and is not an offer or commitment to lend. All loans are subject to credit approval, income and asset verification, and property appraisal. Rich Preston, Branch Manager, NMLS 1735238. NEXA Lending, AZ Broker License 0944059, NMLS 1660690. Equal Housing Lender.