Denver CO Mortgage Tip: Get Your Colorado Home Loan from a Bank or a Broker? (Recap)

In today’s Denver CO Mortgage Tip, I want to summarize the differences between a Loan Officer from a Bank/Credit Union and Colorado Mortgage Brokers.   If you don’t know them when you’re shopping for your next Denver mortgage or Colorado home loan, it could cost you tens of thousands of dollars.  I want you to be an informed consumer!

 Here are the Four Major Differences:

•  Compensation:  Bank Loan Officers are paid a salary and Colorado Mortgage Brokers are normally “Commissioned”.  Neither one by itself is bad although the Banks will try to infer that you can get a more objective Denver mortgage or Colorado home loan from them.  This is not necessarily true.

• Loan Programs:  Banks have limited mortgage programs and Colorado Mortgage Brokers have access to a lot more home loan programs since they are not limited to one lender.   Wouldn’t you rather have the ability to get the “Right” Denver CO Mortgage or Colorado home loan when you don’t fit the normal Bank mortgage?  Sure you would.

• Interest Rates:  Remember that I said that “Compensation” by itself was neither bad nor good.  However when you combine the compensation that Banks have to pay their staff and all the other large overhead costs, it is very expensive for them to operate.  You are going to help pay for their overhead with higher interest rates on your Denver Mortgage or Colorado home loan.   That is why Colorado Mortgage Brokers can normally give you a better rate on your mortgage Denver.  We have very little overhead so we can pass the savings to you.

• Qualifications:  Banks have their own internal standards and can hire “Anyone”.  However as Colorado Mortgage Brokers, we have undergone a strict background check, must have a $25,000 Surety Bond and a $300,000 Errors and Omissions Insurance policy, must have participated in at least 40 certified-mortgage training, pass a written test that verified our knowledge at Federal and State levels, and had to comply with Colorado DORA’s Division of Real Estate licensing requirements.  We are well-qualified to advise you on your Denver Colorado mortgage or Colorado home loan.  We have to be Licensed!

How does all this save you from needlessly spending tens of thousands of dollars on Denver CO Mortgage?   If you get the wrong loan program because it wasn’t available at the Bank and/or the Loan Officer at the Bank wasn’t trained or qualified to properly advise you and/or you get a higher interest rate due to the Bank’s large overhead, you will definitely pay for it.  Ask the millions of home owners who got the “Bad” loans and who are in foreclosure.  

So the next time when you need to get a mortgage Denver or a Colorado home loan ask yourself, “Do you want to get it from a unlicensed, probably minimum waged Bank Loan Officer who can only offer you a few loan programs which may or may not be “Right” for you at a Higher interest rate?”  I have never gotten any of my Colorado home loans from a Bank.  It didn’t make any financial sense even before I became a Colorado Mortgage Broker and it still doesn’t. 

 Hopefully you now understand why I have spent so much time on explaining these differences.  I want you to get the “Right” Denver mortgage or Colorado home loan from Colorado Mortgage Brokers.  I want you to be able to sleep at night and not pay more than you should have!

The next Denver CO Mortgage Tip will address things you should ask Colorado Mortgage Brokers when you shop for your next mortgage Denver or Colorado home loan.