What is the benefit of going through a loan agent for a home mortgage instead of going to the bank directly?

I think we need to pay a fee (around $700) to the agent for processing a loan.What is the benefit of going through a loan agent for a home mortgage instead of going to the bank directly?
Brokers do charge a fee for their services. However, most brokers are not required to use a particulary lender, program or in-house pricing. Therefore, a good broker can often get loan rates for less than most Banks.





Because brokers make up almost 60% of the loan origination market, most lenders provide wholesale pricing to brokers that is less than they charge their retail clients! For example, as a mortgage broker/banker, I can get get you a lower rate at Wells Fargo than you can by applying directly, because I work off of their wholeale rate sheet while you apply using their retail pricing.





Most Banks must use their in-house programs and pricing, regardless of whether they are competitive, whereas a broker can go to ';any'; lender in the marketplace to get the best loan and pricing. That's a huge advantage, regardless of what the banks may tell you.





Untimately, it comes down to the loan officer. The best loan officers are going to get you competitive rates with superior service, deliver what they promise, and do so without any surprises. A good Loan Officer will not long work for a bank or mortgage lender who is not competitive.





Finally, Broker fees are negotiable just like anything else. Shop around and make sure and get comparable Good Faith Estimates from at lease 5 sources including both Banks and Mortgage Brokers and Bankers.What is the benefit of going through a loan agent for a home mortgage instead of going to the bank directly?
I would avoid the broker fees and do a little leg work yourself.





here is what you do.





(1) Go to www.bankrate.com


(2) Under the mortgage section put in your zip code.


(3) Look at both the APR and APY. Pick one with a lower spread and a good rate. lower spread usually means less fees. You may want to stick to the bank names that you know. They are less likely to hit you with outrageous fees unless they are Wells Fargo or Chase.


(4) Pick two or three from the list.


(5) Call three local credit unions and ask what their rates are.


(6) Narrow it down between the credit unions and the reputable banks to three and apply to all three within a week of each other so it does not ding your credit score.


(7) See which one comes back with the best rate and the lowest fees. Credit Unions typically win.





Good luck. Many mortgage brokers are shady and get paid for increasing your rate (spread), prepayment penalties, And some mortgage companies pay more in fees than others so you never know if they are on your side.
Sometimes a mortgage broker can find you a better rate. If you can save more than the brokers fee that's a good deal if you can't, well you get the picture.
For you, none.





The $700 fee won't guarantee a loan and if you have to pay it up front, is quite possibly a scam.