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

In today’s Colorado Springs Mortgage Tip, I would like to sum up the differences between a Loan Officer from a Bank and Colorado Mortgage Brokers.   Please pay close attention because if you don’t know them for your next mortgage Colorado Springs CO or Colorado home loan, it may cost you tens of thousands of dollars.  Don’t you want to be an informed consumer?

The Four Major Differences are:

•  Compensation:  Bank and Credit Union Loan Officers are paid a salary and Colorado Mortgage Brokers are normally “Commissioned”.  Neither one by itself is bad.  However Banks/Credit Unions would like for you to think that you can get a more unbiased Colorado Springs mortgage or Colorado home loan from them.  It is not necessarily true.

•  Loan Programs:  Banks have limited mortgage programs and Colorado Mortgage Brokers have numerous home loan programs since they are not limited to one lender.   Don’t you want the ability to get the “Right” mortgage Colorado Springs or Colorado home loan when you don’t fit the typical Bank mortgage? 

• Interest Rates:  Like I said above, “Compensation” by itself is neither bad nor good.  However when you put together all the money that Banks have to pay their staff and all of the other overhead costs, they have to make it up with bank fees, higher interest rates, etc.  Don’t become a victim by paying their overhead costs with higher interest rates on your Colorado Springs mortgage or Colorado home loan.   This is why Colorado Mortgage Brokers can usually give you a much better rate on your mortgage Colorado Springs.  We can pass the savings to you since have very little overhead.

• Qualifications:  Banks and Credit Unions have their own standards.  They can hire “Anyone” that they want.   However with Colorado Mortgage Brokers, we have met all the Colorado DORA’s Division of Real Estate licensing requirements.   I believe that we are much better qualified to advise you on your Colorado Springs mortgage or Colorado home loan.  We’re licensed and they aren’t!

How does all this save you from needlessly spending tens of thousands of dollars on a mortgage Colorado Springs?   If you get the wrong loan program because it wasn’t available at the Bank/Credit Union and/or the Loan Officer wasn’t trained or qualified to correctly advise you and/or you get a higher interest rate due to their large overhead costs, you may pay for it for many years.   Just ask the hundreds of thousands of home owners who got a “Bad” loan and who are now in foreclosure.  

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

I hope you now appreciate why I have spent so much time on addressing these differences.  I want you to get the “Right” Colorado Springs mortgage or Colorado home loan from Colorado Mortgage Brokers. 

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