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 only the poor who pay cash, and that not from virtue, but because they are refused credit.”
- Anatole France
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:
KCTV Kansas City
Where you get your mortgage mattersKCTV Kansas CityAccording to Jeff Gerner, president of Commerce Bank's mortgage division, when choosing a lender for a home purchase or refinance, there are several factors to consider. â€śWhere you get your home loan matters â€“ it's not just about the rate,â€ť Gerner ...and more »
Is your mortgage portable?Castanet.net... with a lender that not only has great rates but also the most flexible terms and conditions. Your first call should be a chat with your mortgage broker to ensure you qualify for your financing and then you can move forward with confidence to your ...
Constitution Aside, Other Big Questions in CFPB CaseBloomberg BNAThose arrangements are important because they're common in the home mortgage business, and affect a wide range of companies whose fate may also be tied to the outcome in the PHH case. They also matter to consumers and consumer advocates, ...and more »
What Happens to the Mortgage When Your House Burns DownWall Street JournalBorrowers are bound by the promissory note they sign at the closing of a home purchase or refinance to make monthly mortgage payments. Even the total loss of the mortgaged property doesn't relieve borrowers of this obligation. A mortgage also requires ...and more »