Who should you use, Mortgage Broker or Banker?
Many home buyers assume that “mortgage companies” are banks that lend their own money. In fact, that is not always the case; you may find that the company is a mortgage broker, a lending institution or a bank.
A banker is a direct lender; it lends you its own money or the money of people who have deposited into the bank, although it often sells the loan to the secondary market. If you walk into you local bank and talk to the loans officer or Mortgage Specialist, they’ll be loaning the banks money and working to create a profit from the loan.
A mortgage broker is a middleman; he does the loan shopping and analysis for the borrower and puts the lender and borrower together. Many of the lenders through which the broker finds loans do not deal directly with the public (hence the expression, “wholesale lender”). However, they will also shop the banks as well to find the best rate.
A bank can give you direct loan approval, whereas a broker gives you information second-hand. However, many banks are limited in what they can offer, which is essentially their own product. You’ll also find you need to do the leg work to find the best rate. You will need to apply at multiple banks and be approved by several, bringing offers back and forth to get the best interest and terms. In addition, if you present your loan application in a poor light, you’ve already made a bad impression.
A mortgage broker charges a fee for his service, however they rarely charge you the borrower, it is usually the lender who pays the fees and therefore the service is free to you. Mortgage brokers have access to a wide variety of loan programs. He also may have knowledge of how to present your loan application to different lenders for approval. As a borrower it is wise to have both a mortgage broker and a banker on your team.
Only you can answer what is the best choice for yourself. If you have a good relationship with your bank and the mortgage specialist you may not need the services of a broker. However, if you do not, then using a broker to shop for the best mortgage for you could save you thousands of dollars without cost a cent upfront.
About the author: This article is written by Tara Lyons at http://www.taralyons.com Copyright © 2004 - 2008 Universal Wealth Creation |
| This article can be copied and reproduced only if left intact with the authors details below. |
Return to the previous index page: Wealth Creation and Financial Wealth >>
Return to the Main Investment Articles index page: Renting Shares >>
These stockmarket & business articles have been supplied in the interest of Universal Wealth Creation visitors who want to expand their knowledge in the wealth creation & investment fields such as the courses offered by Jamie McIntyre.
Other sites we recommend here at Universal Wealth Creation are: 21st Century Academy with Jamie McIntyre, Universal Trading Solutions which promotes great wealth creators like: Kim Reilly, Simon Martin, Justin Beeton, Louise Bedford, John Kaye, Daniel Kertcher & more. They run great wealth seminars across the country.
Additional speakers that appear at 21st Century Academy seminars are options & CFD gurus Nik Halik and Daniel Kertcher, motivational speakers Justin Herald and Tony Christiansen, Property investors Jason McGuiness, Rick Otton, Mark Rolton and Warren Borsje, Tax structure sprecialist Leigh Barker, Internet marketers Jenny Armato and Tom Hua, Trading Diary masters Bill Stacy and Andrew Dimitri from Planet Wealth, Kinetic Securities stockbroker Angus Knight and JB Global broker Justin Beeton, & Traders International and Eminis Global specialist Peter Elsworth.
To mention a great option book I highly recommend: Options by Guy Bower. Another great trading author is Louise Bedford who is particulary good at candlestick charting.
Meanwhile, there is a great opportunity to learn about the stock market through reading these kind of articles. Learn about share trading, options, futures, CFD's, derivatives, warrants, indices & more in the stock market. You will also learn plenty about business & finance through authors opinions in the marketplace. Enjoy your journey towards financial freedom.
