The mortgage process can be tricky. In addition to understanding numerous similar but not synonymous terms, borrowers also must be conscientious of where their money is going and the associated costs of taking out a mortgage.
It is not uncommon for people to work with a mortgage banker when going through this financial process. Yet some may wonder exactly how these professionals are making money by offering their services?
To begin with, it’s important to understand who mortgage bankers are and what they do. Unlike mortgage brokers, bankers work as direct lenders for specific banks, credit unions or other financial institutions and help customers find suitable products from their company’s range of options. Mortgage bankers work with loan applicants and realtors to undergo the mortgage process to help put all of the intricate pieces together, from evaluating the property to gathering financial information.
Typically, bankers are paid a salary by their respective institution and do not work on percentage fees. Of course, banks add small fees to each loan to cover company expenses, which include salaries for employees such as mortgage bankers. The amount received by bankers doesn’t fluctuate depending on the amount of interest charged or the size of a mortgage. Some institutions, though, may offer their employees financial incentives or bonuses for performance.
While mortgage bankers often show commitment to the interests of both their institution and the applicant, people should do their own research and educate themselves before undertaking the mortgage process.
To learn more about the fees associated with a mortgage, contact the experts at Midland Mortgage today!