Banks are better because...
- The bank is lending the money, so the bank is making the decisions. Mistakes in the application process may be cleared up faster and small favors can be more easily gained by using a bank.
- If you have an existing relationship with a bank, you could qualify much easier since the bank already has access to your financial information and has a relationship with you.
- Likewise, longstanding relationships between real estate brokers and banks can impact the efficiency of the preapproval, mortgage application and approval process. Relationships matter and banks may offer these long-standing customers more favorable terms on a mortgage.
- Many loan products, especially special products such as jumbo loans that exceed certain loan limits, are available only through the banks that hold these loans.