BANKERS VS. BROKERS

Whether you are a homebuyer or a refinancing homeowner, investigate all of your options to find the mortgage that will best meet your individual needs and circumstances.

1. Make sure that the mortgage banker or broker you are using is reputable.  Lenders and brokers in Arizona are not required to hold a license.
   
   
2. Determine whether you would prefer to deal with a bank or with a broker. Bankers will make a mortgage loan in its own name. A broker will, for a fee or commission, find or arrange a loan for you with a lender.
   
   One of the advantages of applying for a loan with a direct lender is that you will deal with the entity (person or company) that will actually make the decision on whether or not to approve your loan application. This direct business contact offers comparatively less opportunity for mis-communication to occur during the application process.
   
   Brokers, in contrast, are unable to make credit decisions or issue mortgage commitments.  However, since they broker with many lenders, they often have a wider choice of loan products than does a banker.
   
   While there aren’t any set rules to determine whether you should choose a direct lender or a broker, you should know when submitting your application which type of mortgage origination organization you’ve actually selected.
   
   
3. Another option for mortgage loan applicants to consider is a rate and point lock-in agreement. A lock-in is a lender’s agreement to make a loan at a particular rate, with or without certain points, provided that the loan is closed by a specified date. Brokers may not issue a rate lock-in agreement themselves, but them may transmit a lender’s lock-in offer to an applicant.