Benefits of Getting a Mortgage Loan through a Mortgage Banker Vs Mortgage Broker
The housing bubble market crisis that happened over a decade ago changed the rules and regulation around mortgage loans. The mortgage brokers were the people to go to anytime you needed alone. Since the mortgage brokers belt in shady dealings, it impacted the industry since it only developed a bad reputation.
Nowadays the small security for the borrowers since the restrictions were tightened for brokers by the SAFE Mortgage Licensing Act of 2008. Borrowers will have to take higher loans when the broker takes premiums but that was stopped since they need to pass the licensing exams. Borrowers now have to think about choosing between a mortgage loan through a broker or from a bank but they can check the advantages of disadvantages of their choices.
A mortgage broker is usually a middleman who works with the client and the bank so the shop around for the best mortgage loan. The mortgage broker works with different lenders and negotiate on the borrower’s behalf, so they will work with the realtor to close the deal. It will be easy for the mortgage broker to shop for the best loans once they get information from your paperwork like income statements and credit reports.
Many of the brokers ask for 1 to 2.5% commission after you receive the loan but that will depend on the type of loan you take, and the commission can be paid by the borrower or lender. Looking for a reputable mortgage broker in the country is vital since they will get you the best deals, but you can use a mortgage calculator for better results. Qualifying for a mortgage loan will depend on the information the mortgage banker received since the work in an institution that gives out the loans.
Since the mortgage bankers work for the lending institutions they will have the final say regarding the approval of the loan and will involve the borrower and their realtor through their loan process. Salaries bonuses and incentives are given to mortgage banker since they are part of the staff of the institution regardless of the loans they close. Working with a broker means you get a variety since they are not required to work with only one lender, so you get different loans.
The broker will get you loans from financial institutions that have less strict on the qualification requirements. The mortgage bankers can get the loans closed in a few days and you can hire a broker to get minute details regarding the loan.