Choosing a Mortgage Broker vs a Local Bank in Maine

by | Dec 1, 2022 | Mortgage Facts | 0 comments

It’s no secret that getting a mortgage can be daunting when you want to buy a home. You want to make sure you’re getting the best interest rate and mortgage product for your needs, but where do you start? Many people choose to go through their local bank, but this may not be the best option.

With so many loan products from so many mortgage companies available, mortgages can be daunting. Comparing mortgage offers from different financial institutions with the help of a local broker could save you time and money on interest and closing costs. Even considering broker fees, the vast majority of borrowers save money working with a broker.

The loan process is the same for you as a borrower, whether you go through a mortgage broker or a lender. However, a specialized mortgage professional has the knowledge and experience to get you the best mortgage rates and products available. Here at Integrity Mortgage, LLC (NMLS #1692497), we are true mortgage specialists – let us help you find the right mortgage for your needs!

What Is a Mortgage Broker?

A mortgage broker is an experienced loan professional who works with many mortgage lenders to offer a wider range of options than a typical loan officer.  As specialists, brokers can help you get better rates when borrowing to buy a home. Working with a broker is easy. Like any other loan officer, your mortgage broker will work with you to fill out paperwork, assess your fiscal situation, and generally assist you with the mortgage process.

Why Choose a Mortgage Broker?

Mortgage brokers generally have the expertise and knowledge to get you the best mortgage rates, products, and mortgage terms. Because mortgage brokers work with multiple lenders, they are familiar with a variety of mortgage situations and can provide customized solutions to fit your individual needs. Furthermore, mortgage brokers often have access to exclusive mortgage products that may not be available at traditional banks or credit unions.

You might wonder how mortgage brokers get paid if they save you money and time.  In some cases, the lenders pay mortgage loan brokers a fee for bringing them home loans to finance.  In these cases, there’s no cost to you as a borrower for working with a mortgage broker. 

That said, you might be on the hook for paying the fee out of your borrowed funds or have to split it with the lender.  Either way, typical fees are about 1% to 2% of the borrowed sum.  Given current real estate prices in Maine, this equates to anywhere from a few thousand to over ten thousand dollars!

Local Banks Manage Mortgages

How Do Local Banks Manage Mortgages?

Most local banks and credit unions offer mortgage products, but the rates and terms can be limited. Furthermore, bank lenders tend not to be specialized in certain mortgages and may not be familiar with complex mortgage situations. As a result, borrowers may struggle to find the best mortgage for their needs without assistance from an experienced and specialized mortgage broker.

This is because your typical bank or credit union is offering a direct loan that they’re providing without actually being an expert in mortgages.  In some ways, this may seem like an advantage.  After all, there isn’t a middleman in this scenario, you’re dealing with the lender as directly as you can. 

The problem is that there’s no incentive to offer competitive rates or even understand your situation because you’re only dealing with your bank.  As with any other segment of capitalist economics, competition is the motivation needed to drive down consumer costs.

Bottom Line: Working with a specialized mortgage broker is sometimes more beneficial than going through your local bank or credit union when it comes to a mortgage. The competition between different lenders for your business often results in significantly better rates, despite the “middleman” of the mortgage broker.

Why Choose a Bank for Your Mortgage?

Most of the time, borrowers choose their local bank or credit union less due to the financial benefits and more because they have a relationship with the institution or their local branch tellers. This makes it an emotional decision.  This, unfortunately, doesn’t work out as most borrowers imagine. 

While there are exceptions, these days, most banks are owned by other, larger banks or investment firms, and their debt gets sold and traded on a massive scale.  This means a loan from the bank down the street may end up being ultimately serviced by a multinational conglomerate you don’t know, and you’re paying extra interest for the illusion of working with a local institution.  

The Best of Both Worlds

Between the world of mortgage brokers and the world of local banking exist specialized mortgage lenders like Integrity Mortgage.  At Integrity Mortgage, LLC, we are committed to helping our clients through every step of the mortgage process – from getting pre-qualified to closing.  We are also genuine mortgage specialists with many specific offerings, veteran loan officers, and a deep well of experience making real estate deals happen.

We understand that each situation is unique and strive to find custom solutions tailored to meet your financial goals. Our experienced loan officers will take the time to explain all available options so you can make an informed decision. After all, only you know which mortgage options are right for you and your unique situation.

How to Get the Best Mortgage Rates

There’s no real secret to getting a great mortgage rate.  You just need to maintain a decent credit score and ensure you’re looking for the right type of mortgage from a wide range of options.  Beyond this, make sure you contract with a reputable real estate agent who will work to get you the best price they can.  As important as your interest rate is, if your principal is lower, you’ll save money regardless of your rate.

At Integrity Mortgage, LLC, we pride ourselves on helping our clients get the best mortgage rates and terms available. Our mortgage specialists have extensive experience with a wide array of mortgage products and can compare various mortgage offers to ensure you are getting the most competitive rate. We also work closely with local banks, credit unions, and private lenders to provide the best mortgage solutions.

When it comes to your mortgage needs, choose a specialized mortgage broker. Integrity Mortgage LLC is one of Maine’s best mortgage brokers! Contact us today for more information about how we can help you find the perfect mortgage solution for your needs.  With years of mortgage experience, let us ensure you get the best rates possible!  Start now by calling us at 833-775-4200 or email us at today!


Submit a Comment

Your email address will not be published. Required fields are marked *