While both mortgage brokers and loan officers help you get your mortgage loan sanctioned, they both function differently. A mortgage broker works as a commission agent helping the borrower through the mortgage process. The mortgage may be from an individual, a creditor, a finance company, mortgage company or the right firm who can lend you the money based on your requirements. The mortgage broker merely acts as an agent who helps the borrower find the right lender of money to suit his purpose. Loan officers are employees of finance or mortgage companies who handle single or multiple types of loans. The company employs them to take care of the Mortgage Processing on behalf of the company and comply with all formal legalities.
Why the mortgage broker?
Mortgage brokers work between the purchasers and the lenders. The mortgage brokers are more adept with end to end processes involved in mortgaging. They are more familiar with the processes involved in mortgage entry services and can help you through the entire process. They can in fact shop around the best mortgage options for you based on your requirements and credit score. They can come up with the most flexible, convenient and economical mortgaging option since they deal with many financial institutions. They also provide ample help with documentations and clearing the title in case it is required. The mortgage brokers are typically well-versed with the latest rules and regulations and also need not follow any specific method, since they function like freelancers.
Why loan officer?
The loan officer will have complete authority over the mortgaging process. The loan officer will be able to suggest the best scheme to take from their company and also may provide a subsidized rate. They will be adept with all kinds of regulatory mandates in mortgaging. They are the authorities to decide on your mortgage rates and mortgaging terms. You can avoid the middleman in mortgage when you deal directly with a loan officer. But you may lose out on the other options available and some documentation support. You no longer pay any commission since you are availing the loan directly from the organization.
Challenges in Mortgage loans
The most challenging aspects of mortgage loans come after you avail the loan. Deed entry and Foreclosure Services can get very complicated if you don’t have someone to guide you through the entire process meticulously. Here’s where the mortgage broker or agent may come of help. If you approach an agency dealing with mortgage loans, they will provide complete mortgaging services which include such challenging processes also. They will ensure completion of all formalities without troubling you much and also ensure that your title is clear once you close the mortgage loan.
Typically, people who approach the loan officers directly are expected to know the steps involved in mortgage loan processing which helps them get over the entire process without much troubles. But if you are not as comfortable with the mandates, it is best to approach a mortgage agent or agency that can guide and assist you through the entire process. You just need to pay a commission or brokerage in return. But it is a convenient way to efficiently complete the mortgage loan processes.