Mortgage Brokers or Banks: Which is Right For You?

When you're looking for a home loan, you might work with an officer at a bank or other lending institution, or you might choose to work with a mortgage broker. The end result is the same - a new house, but the two types of jobs differ.

Bank Loan Officers: The loan officers at a bank, credit union or other lending institution are employees who work to sell and process mortgage and other loans originated by their employer. They often have a wide variety of loan types to draw from, but all originate from that specific lender.

The loan officer takes your mortgage application and works to find a loan product that suits your needs. If your personal credit is approved, the officer moves forward to process the home purchase transaction.

Mortgage Brokers: Mortgage brokers are professionals who are paid a fee to bring together lenders and borrowers. They usually work with dozens or even hundreds of lenders, not as employees, but as freelance mortgage agents.

Think of mortgage brokers as scouts. They find and evaluate homebuyers, analyzing each person's credit situation to determine which lender is the best fit for that person's needs. The mortgage broker submits the homebuyer's application to one or more lenders in order to sell it, and works with the chosen lender until the loan closes. A good mortgage broker can find a lender for just about any type of credit.

The mortgage broker working to secure your loan is earning a fee for that transaction - and the better deal they achieve for a lender, the more they are paid. Don't be too anxious to disclose the interest rate you would be willing to accept, let them tell you what terms they can secure. Shop around to make sure the terms are reasonable.

Many of the mortgage options advertised online are by mortgage brokers. What difference does it make? Maybe none, but you should be aware of the differences between the two positions. A local or online mortgage broker may find you a lender in another part of the country. An online bank might not have a local office where employees can help you one-on-one.

Mortgage brokers can often find a lender who will make loans that a bank refuses. Problem credit is one example. Loans for unique or commercial properties might be easier to secure through a mortgage broker.

Lana Hampton makes it easy to find the mortage right for your needs. Visit her Mortgage website today for the latest information.

ABC News
US mortgage applications hit 8-year low
Times Online, UK - Aug 20, 2008
... mortgage applications fell to an eight-year low last week as Americans delay or abandon purchases and fewer people seek to refinance their loans. ...
US MBA's Mortgage Applications Index Fell 1.5% (Update1) Bloomberg
Mortgage application volume hits multiyear low The Associated Press
Mortgage volume fell 1.5% last week: MBA MarketWatch
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Citizen
Mortgage Rates for Best Borrowers Rise as Bonds Slump (Update2)
Bloomberg - 59 minutes ago
21 (Bloomberg) -- A decline in mortgage bond prices is raising interest rates on US home loans, even for borrowers least prone to default. ...
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Business Highlights Forbes
Freddie and Fannie Bail-Out Imminent Sovereign Society
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Mondaq News Alerts (subscription), UK - 7 hours ago
The Act also expands the target population served by the FHA and creates the "Hope for Homeowners" voluntary FHA-insured mortgage refinance program. ...

COMMENTARY: FHA is riding to the rescue, taxpayers beware
Reuters - 3 hours ago
(Ann Schnare is an economist specializing in housing and mortgage finance. She was former senior vice president for corporate relations at Freddie Mac and ...
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A Treasury bailout of Fannie and Freddie is all but a foregone ...
FT Alphaville, UK - 11 hours ago
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Boston Globe
THE ASSOCIATED PRESS
Newsday, NY - Aug 20, 2008
They can't refinance because housing prices in those markets have nose-dived, and lenders are now demanding full documentation of income and assets. ...
FDIC to offer better terms on thousands of IndyMac mortgages MarketWatch
FDIC Details Rescue Plan for Homeowners With IndyMac Mortgages ABA Journal
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Refinancing not always an easy ride
Seattle Post Intelligencer - Aug 19, 2008
I recently refinanced my mortgage, and I can tell you that I don't ever want to do that again. Even for people who read, read and read the fine print, ...

Combating the mortgage crisis
Bridgeport News, CT - 3 hours ago
She is based in Bridgeport and currently has 70 clients trying to refinance with her assistance. “We have relationships with the lenders,” Latorre said. ...

HeyJoJo.com Relaunches Contact Management Solution and New Social ...
PR-CANADA.net (press release), Montenegro - 3 hours ago
“I made $45000 in commission income on $5000000 in refinance volume. I could not have taken advantage of this opportunity without HeyJoJo.com,” said ...

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