Mortgage bankers finance loans. They are employed by banks to handle loan applications and mortgage finalization. Mortgage brokers work on a more independent basis and get paid each time they close a loan. This is a small detail and difference, but it can have a significant impact on the type of mortgage experience you have. Here’s what you need to know about using a mortgage banker:
If you are looking for a traditional long-term loan, a mortgage banker is the way to go. Brokers will typically offer a wider variety of custom-fit loans, because they are paid to create more financial options for clients. Generally, applicants with less than perfect credit or limited financial history go to brokers. But if you are confident in your application approval chances, going with a bank can be less expensive overall.
Mortgage bankers belong to banking institutions and represent the credibility of their organizations. The risk you take with a broker may be worthwhile if you can’t afford a traditional loan structure, but the guarantee of a banking institution is definitely something to keep in mind when you are shopping around for options.
Going with a mortgage banker also has the advantage of minimizing any closing costs. When working with a broker, borrowers run the risk of extra fees being tacked on as the mortgage is finalized. Mortgage bankers are paid on a salary, and therefore, they are uninterested in squeezing extra cash out of borrowers in the final transaction.
If you are shopping for a home loan, learn from the pros at Midland Mortgage regarding what a mortgage banker can offer you.