MORTGAGE BANKERS: They are the folks that have the money you need to buy a new home or re-finance your existing one. Good mortgage bankers are worth their weight in gold, they can make the home financing process very smooth, a bad one can……make it a nightmare.

They will be glad to get you a pre-approval for a loan even before you start your home search process. Pre-approval is good for you in several ways; first it tells you what price home you can qualify for and second, when you find a home it lets you make a much more aggressive (lower) offer because you can tell the seller or their agent that you’re pre-approved and will have no problems obtaining financing which makes you (and your offer) look better to them. It’s the old “a bird in the hand is worth two in the bush” theory.

Even if you’re not in the Lehigh Valley the pre-approval process can be done by phone or fax before you get here. It’s a step I endorse wholeheartedly.

The Difference Between a Mortgage Banker and Broker

When you're looking for a home loan, you might work with an officer at a bank or other lending institution, or you might choose to work with a mortgage broker. The end result is the same—a new house, but the two types of jobs differ.

Bank Loan Officers
The loan officers at a bank, credit union or other lending institution are employees who work to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all originate from that specific lender.

The loan officer takes your application and works to find a loan product that suits your needs. If your personal credit is approved, the officer moves forward to process the home purchase transaction.

Mortgage Brokers
Mortgage brokers are professionals who are paid a fee to bring together lenders and borrowers. They usually work with dozens or even hundreds of lenders, not as employees, but as freelance agents.

Think of mortgage brokers as scouts. They find and evaluate home buyers, analyzing each person's credit situation to determine which lender is the best fit for that person's needs. The broker submits the home buyer's application to one or more lenders in order to sell it, and works with the chosen lender until the loan closes. A good mortgage broker can find a lender for just about any type of credit.

The mortgage broker working to secure your loan is earning a fee for that transaction—and the better deal they achieve for a lender, the more they are paid. Don't be too anxious to disclose the interest rate you would be willing to accept, let them tell you what terms they can secure. Shop around to make sure the terms are reasonable.

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