Mortgage Shopping and What You Need to Know

If you are shopping for a mortgage, here are some things you should know.

First, there are differences between mortage brokers and mortgage bankers. A mortgage banker actually lends the money, while the mortgage broker works with many banks to find the best deal but doesn't actually lend the money. Mortgage brokers work as middlemen of sorts.

Mortgage brokers work with many lenders and have better luck getting those with credit issues through since they have several lenders to choose from, where the mortgage broker only has one. The mortgage broker also can shop rates and find the best loan to fit your need. I have a mortgage broker that I work with that has been able to close loans that the banks won't touch.

However, aside from my contact, I see many more problems with loans where the borrower used a mortgage broker. But, needless to say, there are thousands of mortgage brokers out there and many aren't a reputable as my contact. And, if there is a problem at closing, I feel much more comfortable working with someone who directly lends the money rather than a middleman.

Finally, there is also a cost to working with a mortgage broker vs a banker. They typically charge more fees such as higher discount points and other fees than a mortgage banker. So, if I have a person who is credit challenged, I send them to my mortage broker as I know she can get it done where many mortgage bankers have denied the loan. However, if you have good credit, you are probably better off using a mortgage banker vs a mortgage broker.

Remember, My team and I will do our best to help you find the best lender for your specific needs...just go to www.topmike.com