Payment is only due after you sign final loan documents (a.k.a. Loan Docs) and you close escrow. You'll get a Mortgage Statement in the mail from your mortgage servicer at which point payment is due. If "anyone" says attempts to charge you up-front for a pre-approval...run! Don't walk, R-U-N-! You don't need to pay for a pre-approval from either a Mortgage Broker or a Lender. In fact, the only payment necessary will be that of an Appraisal.
As for the "Mortgage Application Process," you can read this article: http://www.industry-report.com/ricardobueno/2007/11/the-mort
If you gather your documents before you start "shopping" for your mortgage, you'll effectively be able to bait lenders against one another.
As for the "Broker v. Banker Debate," you can read this article:
Truth be told, it doesn't matter whether you work with a Broker or a Banker. I'd choose whoever gives you the better rate and at reasonable costs! This quote sounds fitting:
"As much as possible, deal only with good and honorable people. If you deal with good people, you won't need a contract, and if you are dealing with bad people, no contract can protect you."
Adam M. Aron
Chairman and CEO of Vail Resorts, Inc.
I believe these two articles should have effectively explained the mortgage application process and pre-approval process to you. What's more, you should have gained a deeper understanding on the differences between Brokers and Bankers. If you have any additional questions, please do not hesitate to contact me:
- Via email: firstname.lastname@example.org
- Phone/Text @ 323.810.2175