In house lenders give you an existing relationship, with history and predictability or access. But in house lenders have more conservative loan programs. Meaning tougher lending standards. There is also more bureaucracy as they are part of a larger company. They also have less incentive and can expect business from others in the office.
Mortgage brokers can make mistakes like anyone else. Some may overcharge their fees unless paid by the lender. Or they may make false promises to get your business.
Mortgage brokers are commission based. It is a broker’s best interest to get the best program and rate to close a loan. An in house lender may collect as little as $500 on a loan. A mortgage broker may collect as much as the realtor.
Strong mortgage brokers have a network of service providers that can make the deal work.
A mortgage broker is the contact between the home buyer and the bank lender. The broker works for the homebuyer. The in house loan officer works for their employer. The broker can find a lender who accepts home loans that the in house lender foregoes. In house lenders have limits on products, principles and criteria that they must follow. This limits the home loans available.