Mortgage broker vs. bank.
One bank has one rate sheet. A broker shops the whole wholesale market. Here's what that actually means for your closing costs and your rate.
A bank
- Sells one product — its own
- One rate sheet, take it or leave it
- Limited loan program menu
- Loan officer registered (not state-licensed)
- Turn times vary by branch / region
A broker (Tayton)
- Shops 30+ wholesale investors per loan
- Wholesale pricing — often 0.25–0.5% better
- Full menu: conventional, FHA, VA, USDA, jumbo, DSCR, non-QM, portfolio
- Individually NMLS-licensed in CO and FL
- Same person from application to closing
Side-by-side comparison
| Feature | Bank | Broker (Tayton) |
|---|---|---|
| Lenders accessed | One — the bank's own rate sheet | 30+ wholesale investors competing for your loan |
| Pricing | Take it or leave it | Shopped across the broker channel — wholesale pricing |
| Loan program flexibility | Limited to what the bank offers | Conventional, FHA, VA, USDA, jumbo, DSCR, non-QM, portfolio |
| Who handles your file | Loan officer + back-office; often handed off | Same broker start to finish |
| Turn times | Varies — large banks often slower | Typically 21–30 days; we control the pipeline |
| When the deal gets tricky | Bank says no = no | We move your file to a lender who says yes |
The wholesale advantage, in plain English
Wholesale lenders price loans for brokers — not for retail walk-in customers. Their margins are thinner because brokers do most of the origination work. That's the structural reason a broker can often beat a bank on rate even after our compensation is included.
If the bank actually wins on a specific scenario, we'll tell you. Bring us a Loan Estimate and we'll price it honestly. About 95% of the time we beat it.
Broker vs bank FAQs
Are mortgage broker rates really lower than a bank?+
Often yes — brokers access wholesale pricing across many investors, and on any given day at least one of those investors will be sharper than your bank's retail rate sheet. We've put borrowers' bank Loan Estimates side-by-side with our quote and saved them 0.25–0.5% on rate.
Do brokers charge more in fees?+
No — broker compensation is disclosed on every Loan Estimate, and on most files it's lender-paid (the wholesale investor pays us, not you). You're not paying extra for the broker channel.
Why doesn't my bank just shop multiple lenders?+
Because they're a single lender — they only sell their own product. A broker is a regulated intermediary that can place your loan with whichever wholesale investor offers the best terms for your scenario that day.
Do brokers handle the loan from start to finish?+
At Tayton Capital, yes — you work with the same team from application through closing. We submit, process, coordinate appraisal, work with the underwriter, and clear conditions ourselves. No 1-800 call-center handoffs.
What if my bank already has a relationship discount?+
Bring us the bank's Loan Estimate. We'll show you our quote side-by-side. If the bank's relationship discount actually wins, we'll tell you. We'd rather lose a deal than place you somewhere we can't beat.
Is a broker safer than a bank?+
Both are regulated. Brokers are licensed individually (NMLS) and through state DRE/DORA equivalents — typically more transparent than a bank loan officer, who is registered but not state-licensed. All disclosures, TILA, RESPA, and consumer protections apply equally.
Bring us your bank's Loan Estimate
We'll price the same scenario across our investor panel and show you side-by-side.