Mortgage Broker or Bank?

An integral part of the buying process includes finding a great lender to work with for financing and obtaining the funding needed to finalize the purchase. However, with so many different lenders, banks and brokers available to work with you on your home mortgage application, you may not know where to turn for assistance with your financing. The terms mortgage banker and mortgage broker are often used interchangeably by those who are not in the industry, but the fact is that these two types of industry professionals are rather different. With a closer look, you may decide to work with one over the other.\r\n\r\nA mortgage broker is an independent agent who is not affiliated with any specific lender or bank. The broker essentially will charge a fee to assist you with your loan, and this includes shopping your loan around to help you find the best deal possible. This saves you time and potentially money, and it also may help because your mortgage broker understands how lenders structure deals with regards to points, fees and interest rates.\r\n\r\nA mortgage banker is a professional who is affiliated with his or her bank, and this professional will only structure loans through that specific lender. This limits your options with regards to financing, but it also eliminates the middle man. You will not have to pay an additional fee to the broker, so there is a possibility to save money by working with a mortgage banker. However, in order to ensure that you get the best deal possible, you will need to shop around on your own.\r\n\r\nAs you can see, there is not one clear option that is best for everyone. Both mortgage brokers and mortgage bankers provide you with real benefits, and both may help you to structure a great deal. Your knowledge of the lending process, as well as the amount of time you have available to shop around for your loan, should be considered before you decide which type of professional is the best option to work with.