Wednesday, September 15, 2010

What is the difference between a "broker" and mortgage "banker" is?

It seems that home buyers and brokers are many, "the question of the difference between a mortgage" broker "and mortgage" banker. May be some differences between the two of them, because I've been on both sides of the fence. I know the differences between them, but please, to see that it is much more advantages on the market today and for a long time to read.

Mortgage Broker – mortgage brokers are generallyapproved with many lenders (B of A, Wells Fargo, the company building of America, Chase, etc …) and go with the lender with the best price (loan rate) at that time. The benefits are the best fares available from shopping around with any lender. The entire loan process, outsourcing, ie, they are managed by the third person, this includes processing, underwriting, loan terms, loan documents, funding, etc. .. which literally gives little control over the loan process. They are basically time frame at the mercy of the lenders and the loan has a number of the many loans in the pipeline. Loan fees are typically higher because of all the parties involved in the process.

Mortgage "banker" – banks or direct loans from mortgage lenders manage the entire process in house, where the process of having full control of the loan and the loan. They are usually not close to the absolute lowest rates available, but above all get the credit on time!> Mortgage Bankers loans do not deal with third parties, if brokers outside, but not typical. The loan rates are typically 25% less than the broker, why not use the third person. Most sellers (REO and short sales) in the market today requires approval of a loan from a bank loan for its ability to mediate in the vicinity of the caliber of a mortgage loan. Mortgage Bankers may also speed up a specific linkthrough the process as required by the constraints of time.

In summary, this book, I was a mortgage broker for 7 years and includes loans has become increasingly difficult, the lack of control due to a mortgage broker is in progress. A perfect example in today's marketplace is a creditor (name withheld), which only recently closed its doors because of false reporting to the Federal Housing Authority (FHA). FHA concluded literally cover the origin and FHA loanshave closed their doors within days! She was one of the largest banks in the United States and a source of mediated loans. I recently started to board first with a mortgage, the company is a banker and is smooth sailing since I arrived.

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