Mortgage Bankers vs. Mortgage Brokers

It used to be that when you applied for a mortgage, it was assumed you would go to the local bank where you keep your savings and checking accounts. Today, studies show that 86% of first time buyers search the internet for rates and homes before making any buying decision.

Where do you start? Basically, in today's market you can approach a mortgage banker or lender directly, or you can go to a mortgage broker. With so much to choose from; shop those interest rates before making a rational decision.

Mortgage Banker
The mortgage banker is the lender; the one making the loan directly. Why not go directly to the source?

Even if you use a broker as the middleman, it's the lender who makes the ultimate credit decision. And it can be cheaper, and perhaps faster, if you go to the source of the goods.

A mortgage banker will present you with only that lender's program of mortgages. You can look online or in the real estate section of your local newspaper to get an overview of lenders in your area and their rates.

Mortgage Broker
A mortgage broker serves as a matchmaker between the home buyer and the lender. The broker draws from a pool of lenders to find the right match. Brokers work as a liaison between borrowers and lenders and earn a fee.

The broker has access to the products of hundreds of lenders, not just one lender's programs. Now a days, with only 3 programs in the marketplace; FHA 203b, FHA 203k, and Conventional Loans; most brokers cannot compete with bankers pricing.

For example, we at Omega Financial Services inc., are pricing 0.375 to 0.75% better then most brokers in our area. Next topic regarding YSP vs. SRP, I'll show you how its possible.

A broker knows a lender's specialty--until that program is taking off the shelves that same day you sell it, (it happened to me when I was a broker).

The broker does everything the lender would do -- checks your credit and work record, arranges for title search and hires the property appraiser -- In some offices, the mortgage brokers also are lenders.

At the end, it's always up to you to decide. Think wisely.

Your friend,

CORPORATE HEADQUARTERS
OMEGA FINANCIAL SERVICES INC.,
VICTOR M. JARAMILLO
SALES MANAGING MORTGAGE CONSULTANT
1872 Morris Avenue
Union, New Jersey, 07083
O:(908) 933-0253 EXT. 328
F:(908) 964-0295
C:(908) 296-0966
E:vjaramillo@OmegaFunding.net
www.fhaomega.com
Fluent: Spanish & Portuguese

Licensed Mortgage Banker, by the Dept. of Banking & Insurance.
EQUAL HOUSING LENDER