Denver CO Mortgage Tip: Get Your Home Loan from Bank or Mortgage Broker?

In today’s Denver CO Mortgage Tip, I want to explain the difference between a Loan Officer from a Bank and Colorado Mortgage Brokers.  Not knowing the difference could cost you a bundle on your next Denver Mortgage or Colorado Home Loan!

When I say “Bank”, I’m referring to any lending institution where you can walk in to get your Denver Colorado mortgage.  Examples would be Wells Fargo, Chase, Credit Union, etc.  On the other hand, Colorado Mortgage Brokers are individuals/firms that act an individual agent for the borrower and the lender.  I am a Denver Colorado Mortgage Broker.

 There are Four Major Differences, but I’ll only discuss two today.

 Compensation:

Banks pay their Loan Officers a Salary.  Banks emphasize that their loan officers are salaried and infer that they aren’t motivated by commissions so you are getting a good Denver Mortgage.  That is not necessary true.  There are very well known banks who purposely directed their high quality clients to their Subprime mortgage department so they could make a lot more money. 

 Colorado Mortgage Brokers are usually Commission Only.  Mortgage Brokers are not necessary dishonest or greedy because they are paid commissions.  Most of the Denver Colorado Mortgage Brokers that I know are mortgage brokers because they prefer their “independent” work and life style.  Let’s put in your terms.  “Have you ever had a “Bad” boss”?  If you are a manager or supervisor, “Have you gotten tired of having to deal with pity employee problems’?  Colorado Mortgage Brokers are just like you, they enjoy their freedom.  Their recommendation for your Denver Mortgage or Colorado home loan isn’t necessarily tainted because they are commissioned!  I’m sure that you probably saw all the negative headlines the past 2 years about the greedy banks and their overpaid CEOs and management staff who took advantage of their borrowers.  Need I say anymore?

 Loan Programs: 

Banks have Limited Mortgage Programs.  A Bank or Credit Union can only recommend a Denver Mortgage or Colorado Home Loan that they have.  If you don’t fit what they have, do you think that will tell you that and refer you elsewhere?  Or do think that they offer another in-house loan that they not be suited for you because they don’t want to lose your business?  I’ll let you be the judge of that. 

Colorado Mortgage Brokers have Unlimited Mortgage Programs.  Since we are “Independent”, Denver Colorado Mortgage Brokers can pick among the many lenders out there to get you the “Right” Denver Mortgage or Colorado Home Loan.  Lenders have different programs.  They will also many times have better interest rates than you would get from a bank.  Don’t you want a Denver Mortgage or Colorado home loan that fits your needs versus what the Bank can only offer you? 

Although these first two differences may not seem significant, they are.  I’m sure that you probably saw all the negative headlines the past 2 years about the greedy banks and their overpaid CEOs and staff who took advantage of their borrowers. They have taken Billions of dollars from the Government in “Bailout Funds” and still really haven’t changed their ways.  Need I say anymore about compensation?

My next Denver CO Mortgage Tip will address the other 2 major differences.  You will be able to see even more clearly how they can either save or cost you a lot of money on your Denver Mortgage or Colorado home loan.   You should be informed when you get your Denver Home Loan!