Whether you are a long-time homeowner or purchasing your first home, getting an appraisal is critical in knowing how much the home is worth before you pay the asking price for it. Up Next: Examples Of Common Closing Costs Here are six reasons why you need a home appraisal before buying or selling a home:
Know The Difference: Mortgage Banker Verses Mortgage Broker
The time has come for you get find a lender for your mortgage. In your research, you may have come across two terms: mortgage bankers and mortgage brokers. What is the difference between these two entities and which is right for you? How do they help you?
When choosing a lender for your home mortgage, it is essential to not go with the first banker or lender you come across. Knowing the difference and finding the right lender can save you money and time.
Mortgage Banker: Works In A Financial Institution
A mortgage banker works in the loan department of a financial institution like Cornerstone Mortgage. Mortgage bankers lend the bank’s money. Since they are at a financial institution, they have access to your banking information like your checking and savings so they are able to have a pre-existing relationship with you—especially if you are loaning from your personal bank.
Because they work for a financial institution, mortgage bankers have their own loan individual programs. So if you determine that their programs are not right for you, you will have to shop around at other lenders to find the right fit.
Which can be where mortgage brokers come in.
Mortgage Broker: Works With Multiple Institutions
A mortgage broker has no direct ties to any one financial institution and can work with multiple lenders. As such, they are responsible for finding you the best loan that will work for you. Unlike mortgage bankers, brokers do not lend their own funds but are the middlemen between the bank and you.
Brokers represent you, the borrower, and are paid on commission or via flat fees that are a percentage of the value of the loan you take out. If you choose a mortgage broker, understand that you will have to start a relationship with them from scratch so there may be a little extra legwork so they can understand your needs.
If you choose a mortgage broker, like with all lenders, remember to check for hidden junk fees that could inflate the cost of your loan.
Always Get Recommendations & Do Your Research
Before you choose between a mortgage lender and a mortgage broker, always do your research and get recommendations from trusted friends, family, or coworkers.
When you find a mortgage broker or banker, check their credentials and make sure they are knowledgeable, reliable, and experienced. A good, honest broker and banker will go their best to get you the best mortgage loan for you.
If you are feeling pressured by your lender or they are showing signs of predatory lending, do not sign anything. Leave and find another.