Home Mortgage Matters
Home is where the heart is. That much is true. But home is also where
money is. As the saying goes, “There’s nothing like a home for a good
investment.” Touché. This is why for most people, buying a new home
is probably the biggest financial decision they’ll ever have to make.
When you’re on the look out for a new home, you need cash. A lot of
it. Most homes today have down payments that are more than what the
buyer can afford right then and there. The solution for this? A mortgage.
The Difference Between a Bank Loan Officer and a Mortgage Broker
Loan officers at a bank or a credit union are employees working to
sell and process mortgages and loans for mortgage customers or
home buyers like you. Their loan types and mortgage products have
several varieties but they all come from one specific originator,
The loan officer’s job is to help you process your application for
a mortgage. To see if you’re suitable a certain mortgage product,
they will look into your personal credit account and start the
approval process for your transaction.
Mortgage brokers on the other hand are professionals who are
peddlers of mortgage products. They are the ones responsible for
bringing together mortgage lenders and their borrowers. As opposed
to bank officers, mortgage brokers are not employees of the
lending companies they work for. Instead, they work independently
as free lance agents who are on the look out for borrowers looking
for a good mortgage.
Looking for a home mortgage usually involves you, your money, and
a bank officer or a mortgage broker. So what’s the big deal? You
ask. The end result is the same – you get a mortgage; you get a
new house. But these two job types are different and it is
important that you at least understand that difference.
In most cases, banks usually close mortgage loans more quickly
than a mortgage broker does. This is probably because a mortgage
broker deals with two types of persons – the lender and the
client. Resolving mortgage issues between these two is a
time-consuming job. This is also perhaps why mortgage brokers
charge high for closing fees. A percentage of the closing fee you
pay on a mortgage goes to the mortgage broker’s personal funds.
This, along with a few more fees, stands as their salary.
"It is the heart that makes a man rich. He is rich according to what he is, not according to what he has."
- Henry Ward Beecher
Another thing is that mortgage brokers can be more resourceful
than banks. Because mortgage brokers do not work for only one
company, they have more access to mortgages and loans. Greater
suitability and better mortgage options are what mortgage brokers
bring to their customers. For instance, your credit history is not
that great. Banks generally reject mortgage applications if the
credit score is below 670. With a mortgage broker, you can shop
around for a lending company that offers bad credit mortgage
In looking for the mortgage that’s right for you, make your choice
based on the best mortgage terms a lender can offer you. Don’t
settle for anything else. If possible, you can ask for mortgage
advice from experts, real estate agents, and even your friends who
have recently bought a home.
Additional Resources and Latest News:
More mortgage changesCastanet.netCanada's banking regulator, OSFI (the Office of the Superintendent of Financial Institutions), is attempting to cool down certain hot housing markets by implementing a stress test to qualify for uninsured mortgages. The new stress test will require a ...and more »
Before you list your homeCastanet.netNot all mortgages are portable such as variable rate mortgages and Home Equity Lines of Credit. Other conditions on your mortgage may also prevent you from moving it to a new property. Many low-rate or no-frills mortgage products are not portable.
Monster in your mortgageCastanet.netYour realtor was a great negotiator and you bought your new home for $475,000. Your mortgage is $350,000 with monthly payments of $1,750 per month over a 25 year amortization. You were also able to negotiate a great rate (3.5 per cent) with your ...