Though banks and thrifts do this as well, some are portfolio lenders that keep the mortgages they originate on their books. Banks sometimes cut deals with people who have done a lot of business with them, too, so there are ancillary benefits to going to one for a home loan. Community Savings Bankshares Inc. of North Palm Beach, Fla., has a special checking account called Mortgage Plus, for example, that features free online banking, special certificate of deposit rates and other perks. The loan officer's advantage is that he may have a recognizable identity for the borrower. The advantage of the mortgage broker is that he has contact with 30-plus lenders and he's in a position then to scour the market for the best deal.
People go to mortgage brokers at their hazard.
Know your broker That means consumers who do so need to make sure they know who's sitting across the table from them. Some states have no educational or professional requirements to become a broker, while others mandate that potential businessmen attend mortgage classes and pass written tests proving their competence. Depending on where you live, that can make it all the more important to seek out referrals from friends. People who want to be extra cautious can check with their state regulatory offices, because many keep blacklists of individuals and businesses that have been censured in the past. If they choose to, they can always call the licensing bureau in the state.