Once you've decided to finance the purchase of your home, you have the option of choosing between a mortgage banker and a mortgage broker to manage the loan process for you. A mortgage banker is simply the lender, the one directly making the loan to you. A mortgage broker, on the other hand, serves as a matchmaker between you and the lender. His or her job is to scan the mortgage market for you, both locally and nationally, to identify what lender fits your needs. Brokers still perform everything that mortgage bankers do, including checking your credit and work record, arranging for a title search, and hiring the property appraiser, but they charge you a fee for their service. It can often be cheaper and faster to go directly to mortgage bankers, since they make the final decisions on the approval of a loan. However, unlike brokers who can present you with a wider variety of options, mortgage bankers will only provide you with their specific mortgage programs. As a result, you'll want to speak with several different bankers to compare rates. Before choosing between a mortgage banker or a broker, it's a good idea to ask friends and relatives for recommendations, especially those who've recently gone through the process themselves. For more information on mortgage bankers versus mortgage brokers, consult a real estate professional.
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