The home buying experience can be an overwhelming experience that can be exhilarating, fun, stressful and exhausting. The process of securing a mortgage, successfully bidding on a home and completing the transaction can be lengthy, complex and involve seemingly endless professionals. Those professionals may include a buyer’s agent, a loan officer, a home inspector, title […]
Missouri Mortgage Brokers vs. Bankers: What is the Difference?
There are two channels you can use to get a mortgage in Missouri, mortgage brokers or bankers. People who have not purchased a home or refinanced may not know the difference between the two channels. There are many local banking and brokerage firms in Missouri. Mortgage brokers work as the middleman between banks and the borrowers on the wholesale end. Bankers work directly with the homeowner, as well as provide lending service at the retail level.
Most people prefer banks when it comes to getting a home loan. Their reason is that there are usually loan services offered at their primary banking institution. For example, Cornerstone Mortgage is a local banker in Missouri. Mortgage Brokers are not able to develop pre-established relationships with the borrowers. A lack of information from the customer could lead to a higher rate. A banker is able to build on existing relationships which allows them to have access to the customer’s checking and savings information. This results in a qualification process and possibly a lower rate. Banks have a reputation of being trustworthy and accountable. However, brokers have to develop a new relationship with the customer and verify their information.
Don’t be too quick on making a decision. The best thing to do is take your time and explore all of your options. Your mortgage will be one of the biggest investments in your life so you want to make sure you are making a thoughtful choice. Shopping for different companies online is a great way to start. The next step would be meeting with different companies and finding which channel best fits your situation.
You may want to go with a local company in Missouri. Mortgage brokers may say that bankers will not do the leg work for you and are more bureaucratic. This is not the case for all lenders. Cornerstone offers full in-house processing, underwriting, closing and are even able to bring your check to closing. This provides a sense of accessibility for the borrower, giving them the opportunity to ask questions in person or by phone.
Check out our glossary of terms to help you learn more about the mortgage language. This will help you be more prepared when you are shopping for the right company to do your home loan.The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.