If you have a financing loans whenever you buy a house or refinancing, it is likely that you have used the services of a mortgage broker or mortgage banker.
What is the difference, you ask? Good question! A mortgage broker is approved with several lenders direct lenders to provide that credit, and earned a fee for it (usually by the consumer and / or the creditor). A mortgage broker does not actually give money,simply arrange the financing.
A mortgage banker also arranges financing, but a mortgage banker actually uses his credit (usually a line of store credit) for loan funds and then sell them as a loan closed in the secondary market to the highest bidder for the loan and give criteria. In many cases, the final buyer of the loans' have been chosen before the loan is self-financed, with the risk ... rather limited.
In theory, a mortgage bankingnormally have access to prices a bit 'better because they are eliminating the average man, but that has changed in the current market conditions. Right now, mortgage brokers usually have access to the same rates, mortgage lenders can offer this.
What does this mean for you? This means that you can just as easily by an agreement, and in some cases, perhaps a better deal from a mortgage broker, as you can with a direct lender. A direct lender may be very limited in its mix of loan products or qualification guidelines, but a broker is usually the price of access to various funding programs and policies are given the best chance of approval for the better.
The collapse of the mortgage lending this year, the average is a choice to make mortgage brokers debacle as the scum of the earth and the source. The community mortgage brokers are not part of the responsibility. Though> Mortgage Broker does not create the loan programs and / or guidelines, are easy to deliver them to borrowers who want it. There are many brokers in the business world who are naive consumers in loan programs that rely too aggressive, without providing any information of the details of the loan. will Fortunately, most of the brokers who have the agreement and they all left the store with experience and probably will at that time, storms.
The key toThey determine that the work is primarily a function of the real mortgage rate your experience, intellect and integrity. As in any service, personal recommendations are usually the best. Moreover, just follow your instincts and do not be afraid to ask questions. If you answer also unacceptable, so you probably need to switch to another job.
