There are lots of options for a home mortgage here in Prince George. Two options for obtaining a home mortgage are a bank and a mortgage broker. Lisa Johnson Mortgage Services is a top-notch mortgage broker company in Prince George. We offer home mortgages for home purchases, home equity mortgages, and home refinance options. In this blog post, we’ll take a look at the difference between getting your home mortgage through a bank versus using a mortgage broker, and if you’re interested in a home mortgage or home refinance, contact Lisa Johnson Mortgage Services today!

A HOME MORTGAGE THROUGH A BANK

Mortgage banks use their own funds to underwrite mortgages. Everyone in the home mortgage process (loan officers, processors, underwriters, and funders) all work for the same company. The bank will fund the loan, which may be kept in-house, or it may be sold to a mortgage servicing company.

The primary point of contact for you is the loan officer. He or she only sells the mortgage options that that bank uses, which can limit your options.

A HOME MORTGAGE THROUGH A MORTGAGE BROKER

When you use a mortgage broker, that person will be your primary source of contact. Mortgage brokers are the middlemen between you and the financing institution (a bank or another financial institution usually). Mortgage brokers work with many lenders, giving you greater options and flexibility when choosing a mortgage product.

WHICH IS BETTER?

The answer is it depends. Here are the pros and cons of each so you can decide for yourself.

Mortgage banks work on your home mortgage from start to finish, with all processes being kept in house. They may offer lower prices on their products. However, the selection of products is vastly limited to the handful the bank offers, and thus they have a conflict of interest in finding the best product for your needs — they can only find the best product they offer for your needs.

Mortgage brokers are like wholesalers — they have the best selection in home mortgages, which typically yields a better and more specialized mortgage for your needs. However, the process can take longer since they are at the mercy of the lending institution, which can delay the home mortgage process. For lower credit, a mortgage broker is usually the option to go with since they have access to government loan programs such as FHA loans that many banks do not.

Lisa Johnson Mortgage Services serves the greater Prince George area with appropriate mortgage products to suit your individual needs. We treat our customers like family; hence, we want the best mortgage product for you, and if you find that elsewhere, we’ll be happy for you. Our advice is to explore your many mortgage options before making a decision. Visit multiple direct lenders such as banks, as well as mortgage brokers. Often it’s a decision to which lender you can trust the most with such a big and important purchase in your life. We’re happy to answer any questions you may have about home mortgages, home equity mortgages, or home refinance options. Contact us today!