When it comes to getting a mortgage loan, there are two main options: a mortgage banker or a mortgage broker. A mortgage banker works for a bank or similar lending institution that actually provides the money for the loan. On the other hand, a mortgage broker is an intermediary between you and the lender. They don't lend money themselves, but work with many lenders to find a loan for a specific person.
If you're looking for a 'Mortgage Broker near me', the jobs of a mortgage banker and broker are similar, and both can help you get a mortgage loan. However, there are some key differences between the two. A mortgage banker is a direct lender, while a broker is an intermediary. This means that the banker works for one institution, while the broker works with many. Additionally, mortgage brokers tend to be more localized, so it's best to ask friends, family, and your real estate agent for referrals. Mortgage brokers may charge a commission like a real estate agent, but they can also save you time and stress by presenting you with several loan options and advising you during the loan process.
It's important to compare prices and ask for references before working with any broker. Furthermore, some financial institutions offer benefits such as discounts or reduced fees to current customers who apply for mortgages. Another option is to use a non-bank lender that has no physical branches or offers deposit accounts. This could result in lower mortgage rates and fees than banks and brokers. You could also avoid broker fees if you choose this route. If you already have business with a bank or credit union, it might be worth considering applying for a mortgage directly from that institution instead of working with a broker.
The prices also tend to be better. After Dodd-Frank, the broker has to set the commission paid in advance and, with the new LE rules, is obliged to respect it.