Banks vs. Mortgage Brokers

If you are buying a home chances are you will be using a mortgage, and there are some BIG differences between mortgage brokers and bank loan officers. I hope this information assist you in making an educated decision as to which will better suit your needs.

Bank loan officers or credit union loan officers are employees who sell and process mortgages for their employer. The loan officers offer a wide variety of loans that all originate from one lending institution, the bank where they are employed.

A loan officer assist you in completing an application and provides you with a list of required documents needed for loan approval. After your personal credit is approved the loan officer moves forward to close your purchase.

Mortgage brokers are independent contractors who are paid a fee to bring borrowers and lenders(investors) together. They provide their services for a pool from a few to several hundred lenders.

Mortgage brokers find you the home buyer, evaluate your credit and determine which lender is the best fit for your needs. The broker submits your application to several lenders in order to sell it and earn a commission. Once a lender is selected they work with the lender, to meet their requirements, until the loan closes.

Brokers are paid a fee for each transaction and the more appealing the loan is to the lender the more they make.

As a consumer it is somewhat difficult to tell if you are truly dealing with a bank or a mortgage broker. Some mortgage brokerages use the words 'bank' or 'banker' in their company name, it is always a good idea to ask.

There are pros and cons to using either a bank loan officer or a mortgage broker, the best thing to do is shop around. Interview the people you are interested in using, without allowing them to run your credit. Only submit a credit application after you have chosen the person you wish to work with. Buying a home can be and is very stressful use someone you can trust to get the job done.

For information on 'How to Secure to Secure Financing the Smart Way' and 'Questions Buyers Should Ask a Mortgage Lender' please email me your address and I will send you a buyer's information packet with these tips. My email is CindyCranston@remax.net, or you can visit my website www.GoSeeCindy.com and register as a user.

I want to be a valuable source for all your real estate needs. I appreciate your support of my business and value any input you may have. ---Cindy

Cindy Cranston