Steven R. Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
(909) 336-2131
Mortgage Banker vs. Mortgage Broker
Here are two questions that haunt home buyers: Should I use a mortgage broker or go with a banker? And what's the difference, anyway?
The short answer to the first question is this: It doesn't matter much whether you use a broker or banker. You can get a good deal with either. The important thing is whether you get a good rate and pay fair closing costs, not who you get the loan from.
The majority of people find that better deal with mortgage brokers. About 65 percent of home loans are originated through brokers.
From the consumer's standpoint, there's not a whole lot of difference between a mortgage broker and a mortgage loan officer for a bank. Both of them describe the various loan types that are available and help the borrower choose one, collect the application and supporting paperwork, and keep in contact with the borrower until closing day.
The main difference behind the scenes is that a mortgage banker lends the bank's own money. The loan officer's employer -- the bank -- decides whether to underwrite the loan and at what rate and terms. This can be a disadvantage, because in most cases the banks products are limited to what the bank offers.
A broker doesn't lend his or her company's money. The broker funds the deal through a lender and does much of the paperwork, but the lender decides whether to underwrite the loan and at what rate and terms. The broker doesn't make those decisions. Brokers generally have a much broader availability of product than does a banker which may be very important in the current mortgage climate. Additionally, the broker may have more flexibility with rates and fees than does the banker.
For information on financing options and and for expert advice contact Arrowhead Hiome Loans, Inc.
Marty Sievers, 909.709.7318, marty@arrowheadhomeloans.com
Tom Crate, 909.336.1793, tom@arrowheadhomeloans.com
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