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Mortgage Broker vs Loan Officer – Understanding the Difference
Mortgage Broker vs. Loan Officer; Understanding the Difference
First, there are several advantages to working with a mortgage broker as opposed to a bank loan officer.
I like to compare mortgage brokers to a hotel concierge. When you stay in an upscale hotel that offers concierge services, you have an added benefit. If, for some reason you need services either from the hotel or outside services, you have a go-to-person. The hotel concierge works on your behalf to assist you in those special needs.
Consequently, a mortgage broker is somewhat like the hotel concierge. Only their service is finding the best mortgage loan for you. Your mortgage broker will work with several banks or investors who offer the most competitive terms and lowest rates. Therefore, your mortgage broker, in essence, becomes your go-to-person within the mortgage world!
In contrast, a bank loan officer can only offer you what his employer, the bank, has to offer. Also, most loan officers are on a salary. In comparison, a mortgage broker’s income is based on commission. Who do you think might work harder for you?
In addition, mortgage brokers have licenses and are under the authority of regulatory agencies. Since these organizations require mortgage brokers to comply with very stringent guidelines you can feel confident in working with them.
At some point in time, you may have heard the terms mortgage brokers or loan officers from real estate professionals or others. Sometimes people make the mistake and use these terms interchangeably. As you will discover in this article, they are two very distinct professions.
Let’s not stereotype a profession
Having been involved in the real estate industry for over two decades, I have noticed mortgage brokers have gotten a bad rap. With all that happened during the crash in 2007, the focus was certainly on the mortgage lending industry as a whole.
Many unscrupulous individuals contributed to the real estate debacle at that time. One thing we must remember, many of those practitioners during the crisis were acting under current law and guidelines. So let us not stereotype this profession or individuals.
Across the country, thousands of professional mortgage brokers who work tirelessly on behalf of their clients. These professionals do all the legwork for you in getting the best mortgage product possible. They navigate complicated guidelines we have today to ensure you make it to the closing table.
When choosing a mortgage broker to assist you in finding the right mortgage keep this in mind. Be sure and select one that has experience and a solid reputation. It’s a good idea to get a referral from someone who has used the mortgage broker. Not just someone who is a college buddy, family friend or a cousin of someone.
Having a team of professionals who are committed to your financial well-being is essential. They will work hard to make sure your experience in buying a home is as smooth as possible.
If you are in the home buying, process currently or just starting to think about it. Take a minute and fill out the form below. We will personally give you a call.
We are here to answer any questions you may have with no pressure at all.
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