So, you have decided that you are ready to purchase some property. You need to decide if you are going utilize the services of a mortgage broker or if you should work with a local bank.
Or maybe you are not sure which option you are going to choose because you are not aware of the differences between bank loan officers and mortgage brokers. The truth is many home buyers do not know the difference between these two types of professionals.
What Is The Difference Between A Loan Officer And A Mortgage Broker?
A loan officer is an employee that works for a bank or credit union. The primary job duty is to sell their employer’s financial products such as mortgages, personal loans and other types of financing. Although they may be able to offer you a variety of loans to choose from, all of the loans originate from their employer.
Mortgage brokers work with many different lenders, and this means that they are not affiliated with only one financial institution. As a result, they can offer you a range of mortgages from different lenders.
These professionals earn a living acting as a middleman between lenders and buyers. They accomplish this by analyzing the various loans that are currently on the market and then selecting one or more that meets the needs and criteria of their clients.
There are several reasons why you should consider working with a mortgage broker instead of a bank loan officer.
It is very likely that loan officers do not only work with mortgage clients. They work with clients who are looking for business loans, personal loans, credit cards and other financial products offered by the lender. These lenders also shift employees around to different departments depending on the needs of the company. This means that the loan officer you work with may not have been in that position for a long period.
A mortgage broker specializes in these types of loans, and their goals are to help their clients long term.
As previously discussed, a loan officer can only offer you the loans the lender they are employed by. However, when you hire a broker that specializes in mortgages, they will provide you with information about loans that you may qualify for from different lenders.
You may want to place some of your money into property investing. It is not likely that a lender will have a loan officer that specializes in a particular niche. They will train their employees to handle a wide variety of areas in the mortgage industry.
In this type of case, you would be better off working with a broker who is an expert on this subject matter. They will look to find you the best mortgage rates available.
Unfortunately, many banks treat their customers like a number. A broker will treat you like a unique client with very specific needs. The products you are introduced to will be tailored to you.
These are some of the reasons why you should consider working with a mortgage broker. The broker will work hard to make you are informed and involved during the loan process.