Mortgage Brokers vs. Mortgage Bankers
What's the difference?
Benefits of Brokers: Brokers work individually with borrowers. The broker is able to choose from a number of mortgage companies to fund your loan and searches for a loan based on the customers' needs. A broker matches clients with lenders then walks the paperwork through final approval and funding. Brokers’ fees are paid by the lender, so they are of no consequence to the buyer.
Benefits of Bankers: Mortgage bankers are direct lenders; working with them eliminates the middleman. Mortgage bankers themselves approve or reject loans and may prove more expeditious. Mortgage bankers must have substantial net worth if they are to survive. Because they are competing with both other bankers and brokers, mortgage bankers offer competitive rates.
There are advantages and disadvantages for each. Every home buyer's situation is unique. Are you considering buying a home or selling to one you have? I welcome the opportunity to speak with you and the opportunity to help.