The difference between a banker and a broker comes down to the products each can offer and where their allegiances lie.
While using a mortgage broker seems like it would save you money because they have access to many lenders and programs, brokers are paid commissions by the mortgage company and some lenders pay more than others or offer perks. When working with a Bank, that loan officer only has access to their own mortgage programs and mortgage rates. A banker is paid by the bank, to make the bank money, by selling you services, while a mortgage broker is paid by the lender they choose for your mortgage provider.
Either way has its pros and cons.
Both have access to various mortgages. The broker might have more companies to work with, but banks and credit unions are becoming more flexible with their products in order to compete. You still need to shop around. Word of mouth from a trusted friend or family or from your realtor is a good way to start. Friends and family do mean well, but as a Realtor I can tell you that I have come into contact with many bankers and mortgage brokers over the last 28 years and always try to find you the best match.
You will likely have to meet with either a mortgage banker or mortgage broker, as they need some basic info about you and your income and expenses. You typically don’t pay either for their research or time. When you choose your mortgage and get it in place, either will then be paid.
You will still negotiate on terms and rates with either.
If you have a mortgage up for renewal, or you would like to refinance, it is always in your best interest to check around with a mortgage broker and/or with the lender who currently holds your mortgage. Just because they were the best option previously, that doesn’t mean they will be the best option in the future.
If you or someone you know is considering a new mortgage or renewal, let’s connect to get you the best mortgage options available!