Finding Lenders- Mortgage brokers vs going to banks directly

[Mak K.]

What's the best way to find lenders to get preapproved? Mortgage brokers? or go to credit unions directly? I am in Houston TX and any suggestion would be welcomed!

[Jeff Shumway]

The trouble with credit unions is that they tend to be 9-5 salary employees whereas mortgage brokers are generally commission employees who do not get paid unless your loan closes. Guess who is going to have a greater interest in making sure you get financing?

Honestly a lot of credit unions are not equipped to deal with loans for investors either. I've seen them totally botch self employed income more times than I can count and mistakenly tell a borrower they are approved for a property. Once they get into underwriting the whole deal then falls apart.