Buying a home is one of the biggest investments you’ll likely make in your life, so it’s important to know exactly what it takes if you’re a first time buyer. In addition to conducting research, finding a mortgage professional to assist you through the process can certainly make your home buying experience much smoother. But what’s the difference between mortgage lenders and mortgage brokers? And which of these mortgage professionals is right for you? Here’s what you need to know.
Basically, mortgage lenders are professionals that can offer you a mortgage. They review your application and determine whether or not you qualify for a mortgage. In other words, they cover all loan origination functions, including:
- Loan term
- Loan processing
- Loan underwriting
- Loan closing
As mortgage lenders help borrowers through the entire loan process, they have the ability to assist you with any issues in your mortgage application (if possible). This not only speeds up the overall home loan process, but also allows them to offer a higher level of customer service and personalized niche products to meet your individual needs.
Mortgage brokers do not originate the loans themselves. Instead, they serve as the middlemen between the mortgage lender and the borrower. More specifically, mortgage brokers gather loan quotes from a variety of mortgage lenders and present the options. Although using a broker allows you to compare multiple options, note that using a mortgage broker does have added costs. A broker will charge you an added fee for their research in addition to whichever loan you choose. For some, this fee may be worth it, while others may prefer to simply apply for a loan through their local lender who can offer competitive rates.
No matter which option is right for you, finding a mortgage professional to walk you through the home buying process is certainly worth it. They will not only reduce your stress level as you purchase a home, but will also answer any questions you may have about the process in general. For more information about working with a mortgage lender, or to learn more about home financing, contact one of our mortgage specialists today.