In event of you searching for a mortgage company, you would come across banks and large mortgage companies, and then there would be mortgage brokers. Do they have much of a difference between them? Do you understand the pros and cons of hiring the services of a bank to that of a mortgage broker?
Let us delve on some of the important differences between mortgage brokers and the banks. You would come across various benefits and drawbacks of the bank and Sun West Mortgage in order to help you decide on the right option.
Understanding a mortgage broker
The mortgage broker would act as a middle man between the mortgage lender and a homeowner. The broker would have the competency to prepare the financial documents, loan application, and issue mortgage pre-approvals similar to any other lender.
A mortgage broker would work with an array of mortgage lenders and banks in order to submit your loan file to them in order to issue a loan. The brokers would work in order to acquire a commission from the lender for completing your mortgage application along with the documents.
Working of banks and direct lenders
A bank or direct mortgage lender would be the company that has actually been funding you the desired loan. You would be working with a loan officer who happens to be an employee of the bank. It has been often seen that banks have been adequately licensed in most states if not all. The loan officer would be given requisite access to the bank loan programs offered by the lender. As you would be working directly with Sun West Mortgage rather than a broker, you could save a significant amount on certain kind of fees.
Who of the two would provide a better deal?
There have been some important things to consider when choosing whether to work with a bank or a mortgage broker. When looking forward to using the services of a mortgage broker, you would be saving a significant amount, as they would have decent access to several programs and lenders. However, that may not be the case always.
Brokers would be paid handsome commissions by the mortgage companies. Few lenders would pay more as compared to others. In most cases, it would create a conflict of interest. You may come across a lender who would cater you with the best deal, but pays a small commission. On the other hand, there would be a loan company that may be relatively more expensive for the borrower but would pay a significantly higher commission.
