Welcome to Chicago National Finance!
We are a premium broker that specializes in the strongest plans for the strongest clients. With financial backgrounds and over 40 years of combined experience, our ownership team secures you the lending programs that best fit your financial goals.
With our excellent lending institutions and Tier 1 status we are able to balance the best custom tailored one-on-one service with some of the best rates in the industry.
Mortgage Broker vs Mortgage Bank or Lender
There are several different ways to secure a mortgage and many do not understand the differences between working with a broker vs lender. Simply a broker has wholesale contracts with several different lenders and all their programs. While lenders have their own programs, underwriters and funds to lend.
Most people are familiar with direct lenders. They are usually the same places you have your checking account, national brands with familiar names. When you apply for a loan it will be their name on the application and it their money lent to you at closing.
When you use a broker the application will have their name on it but they will select from one of many lenders that best fits your needs. Your future payments and servicing will not be handled by the broker but rather a more traditional lender. You do not compensate a broker, the lender does. Their wholesale contracts with each lender allow them to offer competitive rates to their retail competitors without charging any extra fees. Usually a broker has access to better rates simply because of the sheer # of different lenders and programs but not always. One particular lender might be aggressive on a particular program and if the broker does not have a contract with that lender they cannot offer it to you.
Either way you should always at least check programs and rate with a broker whenever you refinance. It is a great way to check several lenders with just one phone call. A broker is licensed with the state and usually has more experience specifically with mortgages than anyone you might talk to at a large bank branch. That experience in the field leads to more resources and solutions to a larger variety of home loan scenarios. They also act as your advocate. They do the leg work to gather all the information on your behalf and work to submit the best data to get your loan approved.
If you just go to one lender you are limited to their programs and their one size fits national underwriting guidelines. This could lead to rejection on a unique local property that some lenders would be willing to lend.
+ An advocate for you. Someone on your side fighting for an approval.
+ Required to be licensed and take continuing education.
+ They compare several lenders in one stop to find best rates available.
+ More lenders so more loan options. Better chance at approval.
+ One on one contact. You deal mostly with one person vs several at large bank.
- May not have access to a special program your bank does.
+ Ease of using same bank as your checking account.
+ Using the same website to access checking account and mortgage.
+ Able to take advantage of some special promotion they have for their customers.
- Limited to their programs and conservative underwriting guidelines.
- Working with a large institutions hard to get someone accountable.
- Having to deal with many different contacts throughout the process.
- Working with a bank employee that might not be a mortgage expert.
- Does not have access to all your checking/savings info thus adding perhaps an extra step.