So you’ve found your dream home and you want to start the mortgage process to make things official. There are two options for buyers when it comes time to secure their local mortgage lender: either go with a mortgage broker or get a loan from a bank. Many homeowners will tell you exactly what they think the right choice is and while their opinions may be valid, they are often biased by their own past experiences. (Click here to see Northern Michigan's finest collection of vacation rentals)

To find out which option is best for your personal needs, continue reading as we look at what it’s like to work with a mortgage broker versus bank:


A mortgage lender refers to a bank or other financial institution that specializes in mortgage products. Banks employ loan officers who work off a combination of salary, commissions, and bonuses. They work with homeowners to recommend mortgage products that will work with your unique lifestyle. When you sit with a loan officer at a bank, they will ask numerous questions to determine the best mortgage rate possible. However, it’s important to remember that the loan officer works for the bank, so they will never recommend shopping around for mortgage rates and the offers they present, will always benefit the bank as well. (Click here to see all Northern Michigan Waterfront Lifestyle Homes for Sale)


Mortgage brokers are free agents that are not associated with a specific financial institution. In a similar way that real estate agents work for prospective buyers or current homeowners, a mortgage broker works for the buyer in securing the best possible mortgage rate available. Brokers approach numerous lenders on your behalf, looking for the best deal. In return, brokers accept commission from the bank for securing a good loan.


Depending on your unique needs and situation, you may choose to go with a broker or a bank officer for different reasons. For example, many people love the fact that a mortgage broker often has flexible hours, can negotiate on your behalf, and have access to non-traditional lenders. However, it should also be noted that in some very rare cases, brokers are not available to face-to-face meetings and there is always the danger that they will simply try to secure a risky loan to cash out on the commission. When choosing a mortgage broker, look for someone that belongs to a reputable company or is very highly recommended by people you know and online reviews. 

Working with a bank also has its ups and downs. For instance, a bank loan inspires confidence with a brick and mortar location in your neighborhood and offers buyers the ability to bundle other banking services with their mortgage. Although on the negative of things, bank loans are often less flexible with a higher interest rate than what you would find with a broker.

For more information on using a mortgage broker versus a traditional bank loan for the purchase of your next home, contact Brook Walsh team today at 231.459.3179.

To begin searching Northern Michigan homes for saleregister with Brook Walsh Home Search. Registration is fast, free, and simple. Brook Walsh is from Northern Michigan and understands lifestyle based real estate investing which is one of the reasons he's chosen to pursue his dream of helping real estate investors with their home buying needs. Learn more about Brook or start your home search now.

Posted by Brook Walsh on


Email Send a link to post via Email

Leave A Comment

Please note that your email address is kept private upon posting.