Having previously worked for a large Bank, and now working as a Broker, I feel like I know first hand the difference.  The best way to explain it is retail vs. wholesale or limited selection vs. wide variety. 

Bank/Credit Union: 

• Offer limited loan program choices.  May not offer FHA, VA, bruised credit loans etc…
• Do not offer the most competitive interest rates.  Each bank determines what rates they are going to offer and offers them to you on a retail bases
• Your application may be processed out of state which may delay your approval, appraisal or closing documents
• If you loan is not approved, you are usually forced to find financing elsewhere where you will have to begin the application process again with a different bank or lending company

• Has hundreds of loan programs available including but not limited to the products most local and national banks offer (click here to go to loan program options)
• Offer the best interest rates because they get rates on a wholesale basis from most of the local and national banks and also many wholesale only companies who do not offer their products direct to the public
• In cost cases, your application including processing, underwriting, approval, loan documents and closing occur locally
• If your loan is not approved on the first try, it can easily be submitted to another lender without you having to complete any additional paperwork

I chose Northwest Mortgage Group over all other mortgage brokers in the area for many reasons but primarily because of the benefits I could offer to my clients.  We have processors in each of our five branches who handle your file from beginning to end.  We also have in house underwriters who can deliver quick approvals.  We even prepare the final loan papers (in most cases) and close the loans in house.  This enables us to close your transaction on time or ahead of schedule.  Also, because of our size and the volume of transactions we handle, we get volume pricing from many of our lenders, which we can pass along to you in the form of lower fees or a lower rate.  For more information about the company, click here. 

Also, I can broker your transaction to any of our lenders and in many states.  Below are just a few of the companies we work with on a wholesale basis: