Mortgage Brokers vs. Banks – Which Is A Better Option For You?

Mortgage Brokers vs. Banks – Which Is A Better Option For You?


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If you are in real estate investing and looking for financing, local banks and mortgage brokers are still important. In fact, traditional financing is still a viable option for the right borrowers. With the two main lending options as local banks and mortgage brokers, there are similarities in how they perform the same functions.

However, local banks are confined to in-house guidelines and programs – while brokers have access to several lending institutions. If looking to buy and hold properties for rehabbing, flipping or long-term sales, you will still need the right financing to hold you over. Similarly, motivated sellers and buyers will still have their credit profiles checked — before financial assistance is rendered.

From cost-affordable down payments to income ratios, certain criteria must be met by all parties involved. This also goes for cash buyers – who may have sufficient financial flow — but are not sure how to proceed. At Accountable Home Solutions, we can find it for you. In fact, we have resources to meet all kinds of different needs – multifamily or single homes. Here are some of the pros and cons associated with mortgage brokers and banks.

Banks

If looking to buy and sell real estate, area banks offer a myriad of financing options and loans. In fact, it is best to speak to your bank that where your accounts are held. This way, you are familiar with their services — and can also access the benefits of timely loans. Still, it is essential to check your credit report before applying.

With more stringent rules these days, banks prefer borrowers that have collateral and good, steady credit histories. This gives them the added confidence to give you these loans, which you can use to finance all types of real-estate transactions. This includes new homes, along with rental properties and even landlord relief scenarios. Here are some things to keep in mind when applying for loans at local banks:

Understand your liabilities when taking out home loans for financing or refinancing purposes.

Take your estimated monthly payments on these liabilities — divide them by your gross monthly income — and you have your debt to income ratio.

Local banks tend to cater to borrowers with good, strong credit scores — which can secure affordable down payments and low debt to income rations.

Local banks offer competitive loan and interest rates — this is essential in deciding which types of loans will meet your needs across the board.

Mortgage Brokers

Mortgage brokers can work with different lenders — at one time. In fact, mortgage brokers usually have access to quite a few banks, financial lenders, and even credit unions. With this in mind, they can correlate loans that specifically meet a borrower’s personal preference and demand.

Similarly, they work with lenders that have more flexible guidelines than traditional banks. This means borrowers with less than stellar credit may still be eligible for loan approvals. Mortgage brokers also have access to lower interest rates, which you may not find at area banks. Best of all, they can decrease your closing costs, while helping to expedite loan processes faster than criteria-ridden banks.

If you need to sell a house fast in Westchester County NY, call us today! We buy all types of homes and help FSBO sellers with excellent services. Contact us at 914-963-0931.

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