What is the purpose of a Mortgage Broker versus a Mortgage Banker – by Rob Wallace
Rob Wallace
http://www.sitesbyrobwallace.com
Business location: colorado
585 25 1/2 Road Unit 215
Phone: 970.255.8262970.255.8262
Fax: 970.2558262
What is the purpose of a Mortgage Broker versus a Mortgage Banker – by Rob Wallace
What is the purpose of a Mortgage Broker versus a Mortgage Banker – by Rob Wallace
Ostensibly, a mortgage broker arranges financing for borrowers with a handful of lenders. A mortgage broker does not make the loan, but receives payments for services. The craft of the mortgage broker is to match the person with the best lending bank.
The variables the mortgage banker has to deal with are the homeowner’s or home buyer’s credit score, property value, real estate market variables, and other issues which cause the mortgage broker to point you in the right direction. This task requires plenty of experience and networking with the lending institutions.
How does a mortgage banker operate?
Decades ago when a person wanted a home loan they walked down Main Street to the local bank or savings and loan. An officer of the bank would speak with you out and if he found you credit worthy, would make you a loan providing he had the money lying around.
Not today; most of the money for home loans comes from three major institutions:
· Fannie Mae (FNMA - Federal National Mortgage Association)
· Freddie Mac (FHLMC – Federal Home Loan Mortgage Corporation) and
· Ginnie Mae (GNMA – Government National Mortgage Association).
From about 1960 on, you would go to all the lenders in town and find a bank which will approve you; but, this process is time consuming, tedious, and inconvenient.
Your best bet today is to find a mortgage broker who can “screen” your potential lenders, find you the best deal for your circumstances and point you to the right lenders.
For the broker to suggest lenders nd for you to facilitate you loan, you are going to need:
· Your Credit History
· A Signed Purchase Agreement
· Proof of Income
· Copies of Your W-2 Forms
· Copies of Your Assets Information
· A Certificate of Your Earnest Money Deposit
· Proof of your Homeowners Insurance
· A Copy of your Title Insurance
So you see that it is to your benefit to seek out a reputable Mortgage Broker. A broker who is readily available. Stick with experienced and knowledgeable people in the business. Get references and touch base with the Better Business Bureau.
Rob Wallace is a SEO copywriter for SITES® an internet marketing development firm in Grand Junction, Colorado. He has been an authoritative figure in this business since 1995 and writes for www.quickmortgage.com.