BANK LENDER

Banks are the most obvious place to start, and while they can be a good option for some, there are some things to consider: Banks do service their own loans. This means they are the ones who put up the money, and they are also the ones who you will pay back. 

Banks have lots of money at their disposal, however they are typically not mortgage experts and are usually not as fast as other options.

  • Commonly used for home loans.

  • They have lots of money and resources at their disposal, and are usually backed by the government.

  • Utilize their relationships with banks and inspire competition between them in order to find the most competitive rates. 

  • Have access to your finances if you already bank with them, which might slightly speed up pre approval

  • You are dealing directly with the loan servicer, so there is no middle man.

  • They have competitive rates.

  • Unfortunately Banks are notoriously slow which can delay the closing and sometimes even ruin the whole deal.

  • They have more regulations and requirements which can make it harder to qualify for a loan.

  • They are not required to be licensed as mortgaged lenders. 

  • Banks can’t "shop around" for better rates. If you are approved, there is typically only one loan option.

  • Most banks do not offer down payment assistance. 

  • You typically will not be working with a single agent dedicated to your case. They will assign whichever agent is available that day.

  • Your lending agent will only available at banker hours, so you cant reach them weekends or after 5. Deals are often made (and changed) over the weekend which can make this problematic. 

Cons

Pros