Mortgage lenders and banks are two popular options for financing home purchases. Banks are depository institutions that offer a variety of financial services, including mortgages, while mortgage lenders specialize solely in home loans. Banks often have more overhead and stricter compliance requirements, which could lead to higher interest rates or fees. Mortgage brokers are an alternative option, as they shop around for the best loan options and handle the documentation collection. They may be more beneficial for those with unique financial circumstances, such as less than perfect credit. Banks may offer convenience and discounts, but may not have the specialized knowledge or flexible requirements.
Mortgage lenders vs. banks. Assessing and deciding which is best for you
