Mortgage Broker or Bank Loan Officer--What's the Difference?
When you are home shopping in Roseville, California, you can get bombarded by mortgage people wanting to handle the financing for you.
If you visit a new home subdivision, you may hear that you have to use their approved loan person. That's not true nor is it ethical.
Put an offer in on a foreclosed property and you might be told you have to get pre-qualified with a certain lender, then get pressured to use that same lender if your offer is accepted.
After you submit a loan application to one lender, you may get phone calls from others trying to get you to work with them.
So, what is the truth? You can use whatever lender you choose. That's the law. If someone on the seller's side balks about your financing, find another home to buy!
You have two main options for help with financing--a mortgage broker or a bank loan officer. The main differences between the two center on professional background and product offerings. (There can be unscrupulous ones in either option!)
- A mortgage broker is required to have an active California real estate license that is in good standing with the State. In addition, they must meet requirements for continuing education. And, beginning in 2011, every mortgage broker must pass a national and state proficiency test for a Mortgage Loan Originator Endorsement to their license. Continuing education is required to renew this Endorsement annually. Brokers have access to multiple lenders, each with multiple financing options.
- Bank loan officers are not required to have a license, complete continuing education or pass tests. They offer only the loan products available through their bank.
Don't be fooled into thinking have to use a certain loan resource. You have choices and now you know what they are!
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