As part of your plan to buy a new home, you are probably wondering where to get the best deal on you Mortgage Loan. Fortunately for you, there are options! You could go the banker route or the mortgage broker route. What exactly is the difference between them, and how can they help you? In today’s blog entry, we’ll be answering just that.
Bankers: Work in Financial Institutions
A mortgage banker usually works in the loan department of a large financial institution. Mortgage bankers are representatives lending the banks money, and since they are at a financial institution, they have access to your banking information like your checking and savings, meaning they are able to have a pre-existing relationship with you—especially if you are loaning from your personal bank.
A disadvantage of going with a financial institution is that mortgage bankers have their own individual loan programs. So, if you determine that their programs are not right for you, you will have to shop around at other lenders to find the right fit which may make the process much longer and stressful.
Brokers: Work with Multiple Institutions
On the other hand, Mortgage brokers like Warsh Financial Group have no direct ties to any singular financial institution, meaning they work with multiple lenders which allows them to better assist you in finding best loan for you. Unlike mortgage bankers, brokers do not lend their own funds but act as the middlemen between you and the bank.Brokers represent you and your best interest, and are paid on commission or via flat fees that are a percentage of the value of the loan you take out. If you choose a mortgage broker, understand that you will have to start a relationship with them from scratch so there may be a little extra legwork so they can understand your needs but usually results in a much better deal for you.
In conclusion, while the names may seem familiar, the differences between mortgage brokers and mortgage bankers are notable. At Warsh Financial Group, we strive to work with you to help get the money you need to finance the home that you desire, with a variety of loan plans to choose from here in Florida. We hope that this blog entry was informative, and if you have any further questions, please let us know. From all of us at Warsh Financial Group, thank you for reading and have a lovely day.