There are different options.  I've worked with and around the biggest banks in the nation for many years now.  I choose to be a broker because I consistently see this as the best way consumers get the best service and especially lowest rates and fees on their mortgage.  I also pride myself on my comprehensive knowledge of the industry as well as presenting all sides of lending possibilities.  So here is what I've seen...

First truth.  Banks are in business to make money... 

They employ loan officers, mortgage bankers, or what ever they are called in any given year to capture the most attractive market share to make the most money and please their investors. 

Second truth.  Banks will use every available channel to capture market share...

Folks, you can get a bank loan by going to a bank loan officer who will tell you that is the best way, or you can call in to their phone center for the latest mortgage special sent to you in the mail, or you can go through a broker who is being courted by their wholesale account representative who is assigned to sell me on why their wholesale division is the best around for brokers.

Yes, your loan will ultimately end up being serviced in the same place, but you will have many ways to get through the application and closing process.  And they will all tell you their way is the best!

As I've said, from my first hand experience working for and with each of these different entities, I personally believe broker between banks is the best.  And here is why...

Working with an experienced broker with a comprehensive knowledge of the industry provides you with insider insight (leverage) into which bank is aggressively seeking the type of loan you need.  At different times during the year, banks get aggressive and conservative with their rates and underwriting conditions.  Lower rates and more flexibility with approving your loan at different times depending on their business practices, time of fiscal year, whether they are building capital or building their loan portfolios.  As well, certain banks go after niches that they want to build.  If you go to one bank for your loan you lose this leverage.

Example: I often see different banks, and I'm talking about the biggest in the nation, each have more attractive rates on the 30 year, 15 year, and ARM products separately.  Same goes for banks that specialize in large loans, construction loans, and financing different types of commercial property.  Many of the bigs on the retail side will tell you they do it all, but they have different pricing (better than market or worse than market) on certain products depending on what kind of loans they want to attract that month.

Internet shopping employs the same idea of shopping banks that brokers employ, without the sometimes high pressure of meeting with a broker in person.  I think that it why it is attractive to some.  But, I've competed with the internet quite a bit with consumers who go there first and then come to me.  I've found I can beat their rates and fees offered--EVERY TIME.  Reason: Uniform price collusion. Time and time again when I or associates have priced the internet, I find their rates and fees to be higher than normal.  But, by presenting a united front, they appear to have given the shopper a number of competing offers--but all at inflated rates.  

Also, the biggest weak point that internet intake vehicles lack is local experts, flexibility, and a local office.  What if you are unhappy, where do you go to look someone in the eye and seek remidiation?  As well, lending rules and regulations differ from state to state.  Not to mention title and taxes.  Do you want some phone intake national loan officer making $50 an application steering through the confusing loan process?  And if they are making $50 a loan are they really going to go the extra mile if there are ways they could save you money or help push your loan through if you are right on the border of qualifying for the best possible loan terms (or qualifying at all!)

Folks, I see my role as a consumer advocate.  I use my experience and lender relationships to ensure your loan gets done.  As well, I use my knowledge of who is aggressive with rates and niches to insure you get the lowest rates and fees on your loan.  As always, I invite you to compare, you'll be glad you did.