I’m curious as to where people initially found their mortgage loans, even if later on it was sold to someone else. Here are the options, along with a brief and very generalized impression of their pros and cons.
- National Banks. In general have above-average rates, but may have special programs for certain groups of people. May be more comfortable and/or reputable. Relatively rigid lending standards. Examples: Bank of America, Wells Fargo.
- Local Bank. May have a good relationship and be easier to communicate with, and may be more flexible with underwriting.
- Online Bank. May offer competitive rates, but the communication and service might not be as good. Example: Capital One 360.
- Local Broker. May offer a better rate by shopping around for a wholesale rate and adding their commission. However, the quality and honesty of these brokers can vary wildly from great to subpar. The rates quoted might not actually materialize.
- Credit Union. Limited membership field, but may still offer good rates to members. Example: Navy Federal Credit Union.
- Online Broker. You can compare lenders online at a distance. However, the service again might not be that great. Example: LendingTree.com.
Here’s is the poll:
Feel free to explain your decision in the comments if you have time!