When looking for a Home Loan you have two options.

· You can either use the services of a Mortgage Broker

· Or go directly to a Mortgage Banker/Lender

A Mortgage Banker or Lender has the money to lend and make loans directly to consumers. If you go to a mortgage bank or lender to get a mortgage, you will be dealing directly with the money source. A loan agent who is employed by the lender takes your application and helps process your loan. The lender’s underwriters evaluate your financial documents to determine your credit worthiness. At the time of closing the lender will collect fees to cover the cost of originating and processing your mortgage.

A Mortgage Broker usually does not have money to lend, he or she acts as an intermediary between the borrower and the lender. You submit a loan application and supporting documentation to the broker, rather than directly to the lender. A big benefit in using a broker is that her or she can quickly move you from one lender to another if for some reason you have difficulty qualifying.

Mortgage Brokers can arrange financing that otherwise may not be available to you. Some Lenders work only with Mortgage Brokers, and do not accept loan applications directly from individual borrowers. These Lenders are called wholesale Lenders. Wholesale lenders can offer mortgage products that have the best rate and terms.

Brokers shop the mortgage market for their customers to find THE BEST INTEREST RATE and TERMS POSSIBLE. When the borrower decides on a mortgage product, the broker assembles the loan package, which consists of the borrower’s application, financial documents and an appraisal, and submits these to the lender for approval. The lender’s underwriters grant the final approval.

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