What You Need To Know About Mortgage Brokers And Loan Officers - part 1
by Jim Johnson
Unless you happen to be paying cash for your new home, you'll need a mortgage loan in order to finance it instead. There are lots of ways to go when getting a mortgage, but two of the most common is to either use a bank loan officer or a mortgage broker, and let's discuss the pros and cons of each.
A bank loan officer is essentially an employee for that particular bank. Their job is to review applications for loans that are made with the bank, and only except the ones that fall within the bank's guidelines for approval. The advantages of using a bank loan officer when securing a mortgage is that if you tend to do a lot of your financial business with the bank, and they know you well, you may find you can get very good terms and easy approval to boot.
A mortgage broker on the other hand is an independent agent that usually represents several lending institutions at once. They are not employee of any of these companies, but they are representatives of them instead. Their job is to find you the best mortgage among the various companies that they represent, and they will be paid a fee for bringing the lending institution and the customer together.
A mortgage broker may not be nearly as familiar with your overall financial situation as your local bank is, and so you may have to provide them with quite a bit more paperwork and documentation than your bank would require, assuming that you bank has a familiar relationship with you.
A mortgage broker will be able to access your credit history just once and then send the details of your loan application to more than one company at a time and let the lenders compete in order to get the best terms and rates possible. This can be an advantage on your credit history report, as having your credit report accessed too often in a short period of time can actually harm your credit score overall.
Read the end of
What You Need To Know About Mortgage Brokers And Loan Officers
Related Mortgage Broker Articles: 7 Reasons To Choose A Mortgage Broker Over On-Line Lenders Commercial Mortgage Broker Mortgage Brokers Should Be Working For YOU Real Estate: Picking A Good Mortgage Broker Choose Wisely-A Comparison Of Mortgage Brokers And Banks |
Related Mortgage Broker Questions: Other resources for Mortgage Broker Mortgage broker? When mortgage broker charge you points to lower your rate, who gets that points, the mortgage broker or bank? Mortgage Broker in Southeastern PA? Mortgage Broker Questions.? Mortgage Broker Earnings??? |
Back from Mortgage Broker Articles
to California Mortgage Articles Directory