What is a mortgage banker and /or a mortgage broker? And how do they impact you when you purchase a home?
First, the mortgage banker is a lender. mortgage bankers may consist of banks, insurance companies and large mortgage lenders. Going directly to one of these institutions can save you time as well as money.
On the other hand, a mortgage broker is an intermediary whose role is to bring the lender - that is, the mortgage banker - and borrower together. The mortgage broker may deal with one or many lenders, and he or she acts as a facilitator. A competent mortgage broker can save a buyer time in finding a lender, who will finance a purchase with attractive, highly competitive terms. Many mortgage brokers also provide advice and support to your local REALTOR.
Whether a buyer works with a mortgage banker or mortgage broker, There is one thing the home buyer should keep in mind. That is, the ultimate goal is to secure the "best" loan possible.
But what does "best" mean? For most buyers, best can be classified into four areas:
1) Service. Are the lenders noted for their service? What experiences have other buyers had with them? What are they going to do for you to make this process as rapid, smooth, and "painless" as possible? Do they have special programs (like pre-approval or low documentation loans that take the hassle out of the loan?
2) Reliability. Do they keep their word? Do they deliver when they say they will? Do they return calls or e-mails? Previous clients- what do they think?
3) Speed. Is loan approval done quickly and efficiently?
4) Cost of the loan. Is it competitive? What is the interest rate? what is the cost of ALL the fees?
Still, with these guidelines, selecting the right mortgage banker or broker can be confusing. However, there is an answer - talk to your local real estate professional. An experienced professional has dealt with many bankers and brokers. He or she knows who can offer you the best combination of service, reliability, speed and cost.
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Thank you for sharing the information.
ReplyDeleteThere is always a great time purchasing the real estate. To purchase the appropriate type of real estate people are moving through the mortgage banker.
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