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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,
their employers.
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.
So what?
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.
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"Money, it turned out, was exactly like sex, you thought of nothing else if you didn't have it and thought of other things if you did.”
- James Baldwin
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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.
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
loans.
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.
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Additional Resources and Latest News:
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Tight-fisted mortgage lenders pressure home salesmsnbc.comWith anecdotal evidence showing that home mortgages are harder to get, the economists crunched Federal Reserve data to show just how much tighter lending standards have become. Using the results of the Fed's survey of loan officers, the report found ...and more » |
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KB Home Announces Change in Board of DirectorsMarketWatch (press release)Los Angeles-based KB Home was the first homebuilder listed on the New York Stock Exchange, and trades under the ticker symbol "KBH." For more information about KB Home's new home communities, call 888-KB-HOMES or visit www.kbhome.com . Certain matters ...and more » |
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Refinancing fantasy won't pay the mortgageTbo.comFalling property values have left thousands of homeowners with mortgages larger than the market value of the home, and making matters worse, they're paying an interest rate higher than the very low levels now available. Unfortunately, the president's ...and more » |
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Mortgage Matters: HARP 2.0 Boosts Homebuyer ConfidenceRisMedia.com (press release)By Carol Toren Print Article The federal government recently threw a lifeline to homeowners underwater with their current mortgages. Thanks to new changes to the Home Affordable Refinance Program (HARP) guidelines, more homeowners can refinance at ...and more » |
New York Times |
On TroubleshootingNew York TimesThe Mortgage Bankers Association's Home Loan Learning Center site provides a long list of appropriate agencies. But to avoid any potential missteps from the outset, industry experts urge borrowers to choose their lenders carefully.and more » |
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Moving Up From Your Home: Sell it or Rent it?Patch.comIn fact, it is not uncommon for landlords to be left with a negative cash flow, depending on the size of their mortgage. We know, however, that it's not just about the rental yield. It's the prospect of long term appreciation that matters most. |
New York Times |
On TroubleshootingNew York TimesThe Mortgage Bankers Association's Home Loan Learning Center site provides a long list of appropriate agencies. But to avoid any potential missteps from the outset, industry experts urge borrowers to choose their lenders carefully.and more » |
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