Tips for Saving Money When Shopping for a Mortgage

When shopping for your next mortgage, there are several strategies that can help you save money. One of the most important is comparing fees. Mortgage lenders and banks often charge fees that mortgage brokers may not. For example, origination fees—which lenders charge for processing your mortgage—can vary widely.

However, many mortgage brokers structure their compensation differently. In many cases, their fees are built into the interest rate, meaning the lender pays the broker, not you. This arrangement is often the result of partnership agreements between brokers and lenders. Additionally, brokers may waive certain charges like administration or underwriting fees to stay competitive, whereas some banks may not even disclose these fees upfront.

As a consumer, you have the right to clear, upfront information. Make sure you’re comparing the total cost of your mortgage—not just the rate.

Work With an Experienced Mortgage Professional

It’s essential to work with an experienced mortgage advisor who can clearly present your options. A knowledgeable broker will help you understand the different loan products you qualify for. If an advisor offers you only one solution without explaining alternatives, it may be time to consider someone else.

Mortgage brokers undergo extensive education to become licensed—often more than loan officers at banks. They also complete continuing education each year to maintain their licenses. Many bank loan officers aren’t held to the same educational standards. Ask yourself: Would you rather take advice from someone with broader training and access to more options?

Because brokers work with multiple lenders, they’re familiar with a wider variety of loan products. This flexibility allows them to find solutions tailored specifically to your needs.

Rate Shopping: Brokers vs. Banks

Interest rates are another major factor to consider. Banks typically offer only their own rates and products. Mortgage brokers, on the other hand, have access to multiple lenders, each with different offerings. This allows brokers to shop around on your behalf, ensuring you get the most competitive rate available.

Having access to a wide range of products gives brokers an advantage over banks, which may have a limited set of options. While both brokers and bank loan officers aim to serve your needs, a broker often has more tools at their disposal.

The Bottom Line

Whether you choose a bank or a mortgage broker, the key is to find an advisor who is on your side—someone who is willing to go the extra mile to ensure you get the best mortgage for your situation. Don’t settle. Get educated, ask questions, and make a choice that will benefit your financial future.

If you are interesting in learning more about what mortgage is right for you just reach out to us.