There is no simple answer to the question of whether mortgage brokers or banks offer the best chance to find the ideal mortgage. This is because there are many different mortgage products available and each borrowers financial situation is unique. Further, the products available are subject to constant change and revision, so just because one lender seemed desirable six months ago does not mean it still is today. Nevertheless, there are still a few simple guidelines that can be followed to determine whether to use a bank or a broker.

In general, banks tend to be more conservative in their policies and practices and only offer their own line of mortgage products. However, they also know that the more products they sell to customers, the more likely they are to retain that customers business. For this reason, they frequently offer better terms and discounts to existing customers that are interested in one of their mortgage products. If a potential home buyer already has two or more accounts with a particular bank and has a notable amount of money held there, this bank should probably be the first place to look for a mortgage product.

Obtaining a mortgage through a brokerage may be a better choice if there is no strong relationship with a banker. A broker has many different products to offer because they represent several lenders with a wide variety of financial products. A good broker can do a lot to help find the ideal mortgage by studying the applicants situation completely so they fully understand the needs of the borrower. This puts them in a position to recommend the best possible mortgage product and lender for an individual. A broker can be invaluable by doing much of the beginning application work and advising clients on the best way to display their current financial statements.

Generally brokers do not receive payment until the mortgage is closed, although some do charge a fee up front. While this can mean that a broker will be invested in helping a client obtain lending, it also means that the broker wants the client approved for any loan, and possibly one that is not idea for the homebuyer. Inappropriate mortgage approvals were a big factor in the sub-prime mortgage bubble burst of 2007.

Once you have decided to enlist the help of a mortgage broker then it is time to begin researching your options to find the most reputable broker to help you. Start by making a list of brokers that have worked with and are recommended by friends and family. You can also include brokers working in the general area. Once there are several brokers on the list start doing research to make sure they are properly licensed. Checking with the Better Business Bureau or Attorney Generals website can reveal if there have been many customer complaints about the broker or if there are legal difficulties he or she is dealing with. Any broker that has complaints, legal problems, or lacks a proper license should be removed from the list of potential brokers.

Once a homebuyer has researched the list and narrowed it to reputable brokers then it is time to interview or consult with each one. Consultations are important because each broker will have a different group of mortgage projects to offer. Interviewing brokers gives the homebuyer a pretty good idea about which broker can help them get the best mortgage for their needs.

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