to use a mortgage broker or not when you have a good credit score and financials?

i'm buying a co-op unit. i have a good credit score, job and financials. everything else being constant (same bank, same time period, etc. ) can a mortgage broker get you a better deal on a mortgage than you can with the same bank. if so , how are they able to do this

Public Comments

1. You will pay way more in closing fees if you use a mortgage broker as opposed to going to a bank. Mortgage brokers are usually used if you don't have the best of credit or need "creative financing". If you can get a loan at a bank that would be your best bet. Good luck.
2. Generally speaking NO. I was a broker in the past. What happens is the broker 'shops' your loan with a multitude of lenders. This was when Conforming, Alt A, and NONPrime had tons of products and pricing. In today's market the banks you feel comfortable working with have roughly the same fees and rates (+/- .125) Brokers try to tell borrowers NOT to talk with other banks because they have that bank as a lender (sometimes true sometimes not) but the reason was to keep the client ONLY calling the broker. Not all brokers are bad, but a conforming loan gets the better rates, and again from one bank to the next - maybe an .125 difference. NonPrime loans is sometimes better to have a broker to shop all the loans and (niches) but everyday more programs are being cut - so I don't see a big reason to do that. Hope this helps
3. A mortgage broker can provide you with many options. Bear in mind you, as the consumer can choose AS MANY lenders as you would like, it does not impact your credit score. Anyone who tells you shopping your loan will lower your score acting in the best interest of their commission check and not your loan package. They may be violating RESPA rules. Also check with your bank or credit union, they may have access to lending programs for first time buyers with less than perfect credit scores, often at attractive rates. Things to compare loan packages on. Cost of loan origination ( points) 1 point origination on $150,000 would cost $1500. Underwriting $300- $500. Processing or documentation fees $300-$500. Fees and percentages higher than this are overpriced. Bear in mind a good Realtor may to negotiate that the seller help with some of these fees.
4. Mortgage brokers can always get you a better deal as they don't deal only with your bank but shop around and it is to their advantage to get you a better deal as they will earn more business through your referrals and also you don't pay a penny for their services as the mortgage companies pay them.
5. well i read this in one of donald trumps books there are good brokers out there and they have reasonable prices.