Is it good to use a Mortgage broker Vs calling banks directly for a mortgage loan ?

I am searching for best interest rate for home i am buying.





1) Is it always good to go with a mortgage broker ? or just call the banks directly ?





2) Will i save some money if i go with a bank directly instead of a broker ?








Any advice ?Is it good to use a Mortgage broker Vs calling banks directly for a mortgage loan ?
If you are looking for an REO (foreclosure), it's quite likely there will be some requirements of by whom a potential buyer must be pre-approved. They tend to frown on mortgage brokers and prefer a direct bank. It's not unusual to see a requirement that the buyer be pre-approved with ';Joe Smith'; from ';Wells Fargo'; at (phone number) or the offer will not be considered on a particular REO. If you are trying to go FHA, you need to work with an FHA-approved lender--of which Countrywide is one.





So end result -- depending on what you intend to buy and what type of program you need, it may be wiser to go with a big name bank. There's nothing wrong with a mortgage broker--in fact that's all I have used myself! You can be pre-approved by more than one entity though it will hit your credit each time, so don't shop the field too freely or it will impact your credit score.Is it good to use a Mortgage broker Vs calling banks directly for a mortgage loan ?
It takes more work and diligence to do it yourself, but it will usually turn out cheaper for you to do it yourself, since the mortgage broker gets paid out of the proceeds from the loan origination fee, which can usually be avoided by working directly with the bank. You need to make sure that if you do it yourself, you set aside a day to call the banks so you compare their rates in almost real time. Waiting a day may see a rate change that skews your results (if you call a bank one day and they quote say 5% and then another bank the next day and they quote 4.75%, if there was a rate drop overnight, you can't compare the 5% to the 4.75, you'd have to call the first bank back).
Call me biased, but I would say use a mortgage broker...but make sure you get a Good Faith Estimate. I have seen other posts where people have said ';Don't use a Mortgage Broker because you have to pay an origination fee';. That is not always the case. In fact, I am a licensed Mortgage Broker in four states and I do not charge an origination fee. I only charge a $225 processing fee and $175 Admin. Fee....no origination, no buydown points. A bank can, and typically does charge an origination fee AND offers you an interest rate that you have to pay extra money to get (buydown points). Again, it is a case by case situation. Know what you want and know what to demand when you walk into a Broker's office. If they will not do what you want, go to someone else. Going to a retail office like Wells Fargo or Countrywide is fine and dandy, but I guarantee you will have to pay some origination or buydown points and your rate will be higher BECAUSE it is retail, not wholesale rates (which is what a Mortgage Broker gets). Also, Mortgage Brokers must be licensed and when you go to places like Countrywide or Wells Fargo (just as an example), which are most likely retail branches, you deal with a Loan Originator who has no licensing nor are required to pass any state exams or have to go to Mortgage Broker school like a Licensed Mortgage Broker has to.