Advantages of Mortgage Brokers in Home Loans

Do you know who to go to for your mortgage loan when you are ready to buy a home? Do you know the difference between a banker’s mortgage and a broker’s mortgage? The key distinction between the two groups of lenders, such as: 1) Mortgage Broker – they produce loans in order to sell them to wholesale lending institutions; 2) Mortgage Banker – they are lenders who are big enough to generate loans plus bundle pools of loans that they then sell to one of the three major lending institutions – Fannie Mae, Ginnie Mae, or Freddie Mac, as well as jumbo lo lo lo The mortgage broker does not underwrite or finance the loans, the wholesale lender, the big three above, and the jumbo investors execute these measures.Learn more by visiting PLAN A Mortgage

The broker typically has a partnership with one of the major banks and they use it to finance most of their mortgage loans. One of the benefits of having a mortgage broker is that, since they know the hot spots of different wholesale lenders, they can pick the best lender for a borrower in an unusual situation. The most significant benefit is that the broker merely has to repackage your loan with another collection of loans and send it to a different wholesale lender if your loan is rejected for any reason.

Wholesale lenders make use of mortgage brokers as their loan officers. The broker gets the lender’s lower rate, and then the broker applies his fee to that rate. If you had gone directly to a mortgage banker, this typically adds up to similar to what you might have gotten unless the lender added a high compensation for himself. An benefit of using a mortgage broker is that mortgage brokers work with some of the most highly trained loan officers in the industry. This is not always the case, though, since mortgage brokers often want to recruit new brokers who work for the mortgage broker business to get their experience.