Home Buying in Roselle Park>Question Details

Angel007, Home Buyer in Roselle Park, NJ

what"s the difference between a broker that work with different banks to a loan officer that works with say CAPITAL ONE ,BANK OF AMERICA OR WELLS FARG

Asked by Angel007, Roselle Park, NJ Sun May 6, 2012

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A broker has access to many different lenders that can offer different loan products finding you the best rates and type of loan you need. I would recommend The Lenders Network, they personally work with you to help you find the best lender and rates.

Good Luck!!
2 votes Thank Flag Link Wed Jul 31, 2013
For example, if you were to walk into Wells Fargo you'd only have their specific programs to choose from and would have to qualify according to their standards. If you contact a mortgage broker you gain exposure to multiple lenders in one shot; saving you time and dramatically increasing approval probability. I work with 30+ lenders (all of the big ones and the smaller ones) and can assure you not only will the best rate be obtained, but also the most efficient program. Please contact me at your earliest convenience so we can find the best program for your specific scenario. I look forward to being of assistance.


Paul Marzolla
pmarzolla@unvmortgage.com
(201) 203-2266
(551) 486-0243
1 vote Thank Flag Link Mon May 7, 2012
There are different types of lenders -

1 Mortgage Banks - You might not recognize the names of many mortgage banks. That doesn't mean they aren't a good choice. Note the difference between 'a' and 'b' -
a) Loan officers can work for a mortgage bank that permits them to ONLY write loans for their employer - the named mortgage bank. The mortgage bank is lending you their money.
b) Loan officers can work for a mortgage bank that permits them to write loans with that mortgage bank (lending that mortgage bank's money) AND/OR also 'BROKER" loans with other lenders.

2) Consumer Banks - These would be both large and small banks that lend their money. Examples would include Bank of America, Wells Fargo and a large number of regional or local community banks that service consumers for checking, savings, money market accounts, etc. Most of the larger banks will discourage, or not permit their loan officers the option to broker a loan.

3) Credit Unions - Membership required.

4) Mortgage Brokers - If it is only a broker, they don't lend their own money. They work as a middleman and find the best bank to lend you money. This is harder today than in years past and the number of lenders who are ONLY mortgage brokers has substantially dwindled compared to years past.
1 vote Thank Flag Link Sun May 6, 2012
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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I am a broker as well as a direct lender/bank so I will give you the skinny. Most of the Real Estate Pros below have done a good job of explaining the difference so I will try not to repeat what has already been said. Brokers have the availability of picking from many banks in order to find a place for your loan but this is not so much about the lowest rate as it is about guidelines. Each bank has its own guidelines so if your scenario is outside of a plain vanilla deal then a broker will have to figure out which bank's guidelines will approve your loan. Bad Brokers will draw you in with a low rate and pretend everything is fine and not have any idea of the guidelines of the bank they are using for your loan. Brokers also have no control over the process. The processors and Underwriters work for the bank not the broker, this is very important if you have a time line to adhere to and if you need a little help on guidelines. Loan officer's that work for Wells Fargo, Chase, Citi, etc… can only get their rates and guidelines only. There are Loan officers that work for non-depository banks that can take loans to several banks such as Wells, Chase, Citi, etc.. They are not acting as a broker rather they lend their own money and then sell the loan to Wells, Chase, etc... This is where you will most likely get the best deal and have the most amount of control over the loan process. Some direct lenders can even sell direct to Fannie and Freddie giving those lenders the most flexible guidelines outside of a portfolio loan. Like I said I am a Direct Lender/Bank and a broker and my company does have the availability to sell directly to Fannie and Freddie so I am the complete package and can actually give you the real pros and cons for your scenario. My Realtor partners love me because I can tailor our client's mortgage to exactly what they need whether it be a less than 30 day close, a buyer with less than 600 Fico scores, lowest rate or a Self-employed borrower that can't show income but wants to buy a 2 Mil house. My comments and those of my fellow real estate pros should shed some light on the difference for you. Please feel free to reach out to me if you have any questions, I am here to help.

All the best,

Fritz Walter
VP of Retail Sales
Toll free: 800-359-1996 x551
Direct: 203-783-4551
Email: fwalter@totalmortgage.com
Alt emai: fritz@post.Harvard.edu
NMLS ID: 387922
Visit my webpage: http://www.totalmortgage.com/bankers/fritz-walter/
Company Website: http://www.totalmortgage.com
Total Mortgage Services, LLC - NMLS #2764
Licensed in: CT, FL, MD, NJ, NC, SC, TX, VA
Total Mortgage Licensed in: AR, CA, CO, CT, DE, DC, FL, GA, IL, KS, ME, MD, MA, MI, MS, NE, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VT, VA, WV, WA

Total Mortgage offers a complete selection of mortgage programs including:
Conventional, FHA, FHA 580-639 FICO, FHA 203 Renovation (Streamline & Consultant), HomePath, VA, VA IRRL, USDA, Jumbo financing , and No Income or reduced income. Portfolio, jumbo, and conventional programs offered for self-employed borrowers as well.
0 votes Thank Flag Link Wed Jul 31, 2013
You have not included another option. Mortgage banking companies, such as mine, lend their own money and then sell the loans off to banks that service the loan. This will give you the benefit of having your loan underwritten in-house, while also being able to match the loan that you need with lenders that have various guidelines. Your pricing can also vary depending on what type of loan or term you want. I am also able to broker loans to other banks, if that is what is needed for your situation.
There is one other important difference, while those who work for depository lenders and credit unions may have to register with the NMLS, Nationwide Mortgage Licensing System, they do not have to be licensed either by the NMLS or by the states in which they do loans. They do not have to take continuing education courses, or pass the tests that are involved.
Some people also do not realize that loan officers for banks work on commission also. Someone is getting paid along the way whether you go directly to one of the banks you mentioned, or you choose to go another route. They are not getting a salary, other than possibly a small draw against commission.
0 votes Thank Flag Link Mon May 7, 2012
There are many types of lenders. Some work for a specific bank and have just one group of products to sell you. These mortgage bankers lend their own money and are responsible for making their own underwriting decisions. Often, the fees from these lenders are less than brokers. However, that isn't always the case.

A mortgage broker is very useful if you are a self-employed borrower or have an atypical loan scenario. A mortgage broker gets paid from you in terms of an upfront fee, points on your loan and/or compensation from the lender with whom the broker places the loan. The advantage of a broker is that he or she can shop various different wholesale shops and decide at the last minute, where they will place the loan. In the past, mortgage brokers would place the loan where they would make the most profit. Today, with the current mortgage banking and brokering laws in effect, all banks must adhere to certain pricing guidelines with respect to the good faith estimates that they provide.

The best advice with respect to mortgage companies is to choose a mortgage company that is reputable. Something too good to be true, tends not to be true. Ask your real estate professional, check with friends and relatives for referrals, talk with your attorney or financial adviser. Some mortgage brokers are fantastic. Some banks are the pits! If you are navigating through uncharted waters as a first time home buyer or need help, ask lots of questions. All mortgage companies and banks provide good faith estimates. Using the good faith estimate you can compare different providers.
0 votes Thank Flag Link Sun May 6, 2012
I think that you just answered your own question.
0 votes Thank Flag Link Sun May 6, 2012
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