|
|
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.
 |
"Be not penny-wise. Riches have wings. Sometimes they fly away of themselves, and sometimes they must be set flying to bring in more.”
- Francis Bacon
|
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.
 |
|
Additional Resources and Latest News:
|
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 » |
|
Family Matters: My Grandma's Reverse MortgageReverse Mortgage DailyHis reaction was more neutral, or even positive: it's her home equity, and it's hers to use as she sees fit. Back when I had first heard about reverse mortgages, the concept of not being able to leave the home to heirs seemed outrageous, ...and more » |
|
Government officials testing plan for foreclosed homesLancaster Eagle GazetteThe government is starting to shed foreclosed, single-family homes it owns -- by selling them in bulk to investors, who would turn them into rental properties. Officials, however, are saying only that test sales will occur "in the near-term" with a ...and more » |
|
Protect Freddie from its own designPocono RecordNational mortgage giant Freddie Mac was created to help make home loans accessible to Americans. But an investigation has found that the taxpayer-owned agency has actually invested heavily in trades that make money only if homeowners don't refinance ...and more » |
|
Taxing Matters: 3 Common Home Tax ConcernsPR Web (press release)Below Matthew Rand, Managing Partner of Better Homes and Gardens Rand Realty discusses three common tax topics. “If your home is affected by a natural disaster, your damage costs will be deductible from both state and federal income taxes,” says Rand.and more » |
Google News
|
|
