Yes and No.  Sometimes the reality is not as rosy as the perceived reality. 

There are three basic mortgage entities you can work with; a Broker, Correspondent Lender, or a Bank. 

• A Broker maintains multiple relationships with lenders that offer their loan programs, and the Broker relies on the chosen lender’s underwriting and closing departments to approve and close their loans.
• A Bank usually lends its own money and has in-house Underwriters and Closers – but they often have more strict guidelines and only offer the loan programs created by the bank.
• A Correspondent Lender maintains multiple lending outlets like a broker, but also employs in-house Underwriters and Closing operations. 

So, which is better?.......... Hard to say. 

Many mortgage financing sources will boast that they can just step down the hall to their in-house Underwriter and get an expedient (presumably affirmative) loan approval.  This tends to give one the assumption that every underwriter who works within the same company is willing to be a little more flexible.  Whereas that can be true in some companies, in other organizations an in-house underwriter may need to be more cautious to avoid any implication of impropriety.  Some lenders even have a policy that underwriters reviewing branch office files must be more strictly evaluated, and in other cases it is company policy for the loan officer and underwriter to avoid directly discussing a loan file. 

Brokers will tell you about their access to large national wholesale lender’s programs that rival the singular offerings of a bank.  But brokers are going to be at the mercy of the service supplied by the lender’s Underwriter and Closing departments, so they have to be careful which lender they choose for your loan.  The experience and relationship between the broker and the lender is critical to your loan experience. 

Regardless of whether you use a Broker, Correspondent Lender, or a Bank, your best decision will rest in the person you choose more often than the type of company you use.  For this reason, you may want to consider the wisdom of using someone you trust – someone that has a great reputation combined with a depth of knowledge and experience of the industry.  If you are working with that kind of person, their organizational setup becomes a distant second in your decision making process.  Honesty and integrity are the two best assets to have on your side in any transaction. 

At Churchill Mortgage our Home Loan Specialist have the heart of teacher and are willing to spend the time it takes to help you understand the best options for your personal situation.  If you are considering purchasing a home or refinancing your current mortgage, we would be happy to assist.  Call us at 1-888-562-6200 or Request A Call Back on our website www.churchillmortgage.com and we will contact you at a time that is convenient for you.