Decision Tools
Retail Banks
Before the growth of the Internet and mortgage brokers, consumers primarily went directly to a retail bank to get their mortgage. Most of the largest banks also offer mortgage application services on their websites.
Retail Banks
- Knowledge of the local real estate market.
- If you qualify, quick closing of your mortgage.
- Virtually guaranteed not to get your lowest rate.
- Limited to the products the bank offers.
- You may not qualify for their products.
FAQs: Retail Banks
Why do people go directly to a retail bank?
People usually go to a bank because they are familiar, comfortable, or confident in the bank's ability to grant their mortgage. Local branches of a retail bank, in fact, do offer the benefit of having a greater knowledge of the local retail market and can quickly close your loan if you qualify.
What are the drawbacks of going to a retail bank?
The major drawback of going directly to a retail bank is that you are limited to the products and lending criteria that bank offers. This has important consequences:
Limited Product Offering:
By approaching a retail bank, you are limiting your options to the products that particular bank offers. You may also not qualify for the bank's products, which puts you in the position of having to start the process over.
Higher Rates:
In addition to a limited product offering, by going directly to a bank you will only have access to the bank's retail rates, which are almost guaranteed to be higher.
