Home Equity Loans Rate | Is a Mortgage Broker a Loan Officer?
A mortgage broker is not a loan officer. A loan officer works for a bank or lending institution. Their job is to process loans or mortgages for their employer. A loan officer can usually offer you several different types of mortgages with different interest rates, but they’ll all come one source – the employer.
Mortgage brokers, on the other hand, don’t lend money. They’re go-betweens, independent free-lance agents who represent a host of lending companies, including investment banks, savings and loans and even private sources. Their job is to bring together borrowers and lenders - for a fee of course.
Mortgage brokers will do most of your research for you. After examining your specific needs and desires, they evaluate your equity, income, credit standing, etc. with the intention of finding you the best lender for your circumstances. They’ll then work with you and the lender through the whole mortgage loan process. Of course, if you have the time, you could do this yourself. However, you may get a better deal since the broker already has a working relationship with different lending companies.
Hopefully, using his or her many contacts, a mortgage broker will get you a new mortgage with the best terms and interest. Remember, though, a mortgage broker is also working for their own interests as well as yours. The more they get for the lending company, the higher their commission will be.
Still, working with a mortgage broker may be a good choice, especially if you’ve been denied a mortgage by your local bank or having other problems refinancing. It’s often possible for a broker to find lenders for applications banks refuse.
When working with a broker, you can save time and hassle by bringing copies of your credit reports and any other necessary information and papers to your first meeting. This way the mortgage broker will have a much clearer idea about your situation and the type of loan and terms he or she can secure for you.
One last point. Always get referrals from someone you know, before choosing a mortgage broker to work with. If you know a local real estate agent, ask if they have someone they recommend. Also consider working with more than one broker. You might get a better deal, if they’re competing for your business.