Colorado Springs Mortgage Tip: Should You Get Your Colorado Home Loan from a Bank or Mortgage Broker

This Colorado Springs Mortgage Tip will address the difference between a Loan Officer from a Bank or Credit Union and Colorado Mortgage Brokers.  Not knowing the difference could cost you tens of thousands of dollars on your next Colorado Springs Mortgage!

Whenever I use the term “Bank”, I’m referring to any lending institution where you can get your Colorado home loan by walking into their building.  Some examples would be Chase, Wells Fargo, Key Bank, your local Credit Union, etc.   Colorado Mortgage Brokers are individuals/firms who act as an individual agent for the borrower and the lender.  I want to be upfront with you, I’m a Colorado Mortgage Broker. 

 Although there are Four Major Differences, I will only address two of them today.

 Compensation:

Banks usually pay their Loan Officers a Salary.  Banks try to give the appearance that they are the “Good Guys” that you can trust.  One bank that I use for my checking account has a large banner that boldly states that their Loan Officers are Salaried.  The message that they want to send is that a “Salaried” Loan Officer will give you the better Colorado Springs home loan than Colorado Mortgage Brokers.  They want you to believe that they are not making their Colorado Springs mortgage recommendation based on their bottom line. This isn’t necessary true.  As the media has widely publicized for the past two years, some very “Big” banks gave bad loans to people and/or directed them to a higher cost Colorado home loan than the people deserved.   You’ve seen all the outrageous greedy behavior from the Big Banks without any apparent regard for their customers/borrowers.  Can you afford to trust them for your Colorado Springs home loan?

Colorado Mortgage Brokers are usually Commission Only.  Colorado Mortgage Brokers are not necessary motivated based on their commission compensation.  Most of the Colorado Mortgage Brokers that I know like the “independent” work and life style.  Let’s relate to your employment situation.  “Do you like being told what to do and when to do it”? “Have you ever had a “Bad” boss”?  As a manager or supervisor, “Have you gotten fed up with dealing with any of your employees’?  Colorado Mortgage Brokers are no different than you.  They enjoy their freedom.  You are probably not aware of this, but Colorado Mortgage Brokers have the flexibility and the ability to give you a better Colorado Springs Mortgage or Colorado home loan.  We can do that because Colorado Mortgage Brokers are not constrained by a lending institution profit requirement.  Of course, there are some Colorado Mortgage Brokers who may not act in your best interest, but the same goes for the banks.  Again, that is why you should check DORA.

 Loan Programs: 

Banks have Limited Mortgage Programs.  Banks and Credit Unions can only give a Colorado Springs Mortgage that they have in their portfolio.  It’s like when the Model T first came out, you had your choice of color, “Black”.  The same goes with banks.  If they don’t have the loan program that you really should have, do you believe that they tell you that?  Will they refer you elsewhere?  Or do think that they will give you another loan that they do have?   I think you know the answer. 

Colorado Mortgage Brokers have Unlimited Mortgage Programs.  Since we are “Independent”, Colorado Mortgage Brokers can choose among the numerous lenders to get you the “Right” Colorado Springs Mortgage or Colorado Home Loan.  All lenders have different programs and loan niches.   We can structure your loan based on your personal situation. Wouldn’t you rather have a Colorado Springs Mortgage or Colorado home loan that fits your needs instead of what the Bank can only offer you?  Sure you would!

My next Colorado Springs Mortgage Tip will explain the other two major differences.  You will really be able to see even more clearly how Colorado Mortgage Brokers can save you a lot more money on your next Colorado Springs Mortgage or Colorado home loan.   I want you to be able to make an informed decision on your next Colorado Springs Home Loan!