In these tough economic times, it’s more important than ever to be aware of what you’re getting into when it comes to buying a home Mortgage Advice Lisburn. Bank Vs Mortgage Broker. Banks are a large corporate entity in the U.S, and they certainly have one major problem: they lack the capacity to work directly with people looking to purchase a home. Working directly with a bank on a mortgage is generally less expensive and less stressful than working directly with a mortgage broker. Let’s break down the differences between these two methods of acquiring property through the mortgage industry to see exactly how they work.
Mortgage Broker Vs Bank
A mortgage broker or bank employee works on commission, so their motivation is essentially to get clients as much money as possible. The mortgage broker is not concerned with how much money they can actually get, they only care about the number of loans that they approve, regardless of the quality or terms of those loans. When a client refers a loan officer to them, the loan officer does practically nothing but forward the referral to the mortgage broker, who will then make an application to the lender to get approved for the loan. Because the mortgage broker is paid a commission for every mortgage they refer, there is absolutely no way they could help their own clients out.
Another way that mortgage brokers work is that they may go to several different lenders, seeking interest rates for different loans and showing them to a loan officer who directs that person to a lender for a quote. Once the quotes are back, the loan officer contacts the lender and arranges an appointment to speak with them directly. While this scenario may seem similar to working directly with a lender, it is important to note that the interest rates the loan officer gives to their mortgage broker may be much higher than those the lender would offer. This is because the broker receives a portion of the closing fees and other miscellaneous fees from the lender. If you’re trying to save money, this type of commission structure is not what you should go with for your next mortgage.