Big Banks .vs Small Mortgage Banker / Broker


When getting a mortgage don’t be fooled that you will get a better deal with a big bank. The fees and rates typically are higher with a big banks. Also some of the big banks charge application fees. For example Chase Bank currently charges a $400 application fee to get the ball rolling. These application fees vary between some of the big bankers.

The service with big banks typically are below par. I hear currently with some of the big banks it could take 45 to 60 days to close a loan. With small local bankers you can typically get your loan closed within 30 days or less.

You may be asking why is this so? Well one of the main issues with the big banks is the turn over they have. The big banks don’t pay their loan officers big commissions and there is too much red tape to get a loan closed. You can go to a small banker and get the loan closed with less red tape and in most cases get a better deal. Another reason is the big banks put their loan officers on salary plus commission so they are not as motivated to get the deal closed. Most small bankers/brokers are 100% commission and they need to the deal to close smoothly so they can continue to get referrals to make a living.

I personally have seen friends leave the small broker/bankers shops to go to big banks only to return later because they had issues getting loans closed. In some cases the banks got some deals done that small banks could not get done, because that borrower had money with that bank. But in most cases the guidelines are the same for all bankers….


If you are getting ready to buy in the great state of Texas give us a call or apply at


Author: Mike Clover


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