If you are shopping for a mortgage today everything has changed. If this is not your first home and you have had mortgages in the past don't think that what you knew then has anything to do with what is going on now. It doesn't. Everything has changed. Everything.
Different banks, mortgage brokers, handle things in different ways. Different banks have different rules. Some of these rules can effect he progress of your purchase, some of these rules might not be foreseeable by an inexperienced mortgage broker.
Often first time buyers will walk into a bank branch because that is where they have their checking account and because they feel that they have a "relationship" with that bank. Well guess what? That bank may not have the best mortgage product for you. That bank may not be the most efficient mortgage producer. That "mortgage" person sitting there may be a newbie to the business too.
I recently had a first time buyer who walked into their local bank and started the mortgage process that way. When I asked if they needed a referral they said, no, that's okay we know someone. So, rather than take a reference from an experienced real estate agent who has cultivated mortgage brokers that do a really excellent job, have been tested again and again this couple felt more comfortable just walking into their bank branch.
Not all mortgage brokers, banks, etc are created equal. It truly makes a difference. Personally if I refer a buyer to a mortgage company, broker I do NOT get a referral or any other "kick back". I do not get tickets to the Yankees games, dinner at Peter Luger or anything. I make the referrals because I want my buyers to get financing. I want to know they are in professional and capable hands. I do not want to be driven crazy by a bank that is inefficient or won't be there next week.
