Financing in West Palm Beach>Question Details

Bob Brubaker, Real Estate Pro in Lake Worth, FL

Which is better to use. a motgage broker or a mortgage banker?

Asked by Bob Brubaker, Lake Worth, FL Sun Feb 27, 2011

Help the community by answering this question:


A mortgage Broker has to pass a national test to get licensed, a banker simply operates under a bank. You do the math.
1 vote Thank Flag Link Thu May 5, 2011
It's all hype the broker vs banker thing. They both have access to the same programs and rates. Whether the underwriter is sitting next to them in an office or in another state is irrelevant based on revolutionary technology such as phones, faxes and emails. Since most conventional mortgages are sold anyway, it makes no difference if they are lending their own money or not. When selecting a professional to work with, it's the name on the back of the jersey that counts. There are good and bad in both fields and what you want is a competent, licensed mortgage professional regardless of title.
Web Reference: http://WeFixRates.Com
1 vote Thank Flag Link Tue May 3, 2011
As Marsha said a mortgage banker, we have direct acess to many programs that your bank cannot do, most banks push the 20% down standard conventional loan.

Like myself I focus on Government lending (FHA, VA, USDA - Fannie (Homepath and Jumbo) Freddie Mac (Homesteps)

FHA is 3.5% down and Homepath REO homes have a special right now 3% down and 3.5% toward closing costs till June 30th.

Hope that helps:)

Carl Ashton Mortgage Banker/ Loan Originator
NMLS MLO ID # 247293
E Mortgage Management, LLC
7601 N Federal Highway
Boca Raton FL 33487
Phone: Direct: 561-210-3000
Mobile: 239-580-9977
Fax: 866-630-4085
1 vote Thank Flag Link Tue May 3, 2011
Robert I like to work with a mortgage banker. They will close the loan in their name and have their own underwriters. Mortgage bankers tend to be more responsive than depository institutions and seem to have more control over the loan process.

Just for a timeline I currently have a buyer that is using a mortgage banker that I recommended. We went under contract using NSP funds 14 days ago. Appraisal is done, loan is in underwriting, and we are just waiting for city inspections. This is an FHA loan and we could close Monday if not for the NSP funds but it is hard to turn down over 9000.00 in free money to close quicker.

Don't let anyone tell you that an FHA loan takes forever to close it just takes that company forever to process it. I have had dealings with banks where it takes 7 days to cycle a question from the appraiser that is not acceptable.
0 votes Thank Flag Link Sun May 8, 2011
I've spoke to brokers who were outbid by mortgage bankers for the actual interest rates and I've found that, sometimes, Credit Unions will give better terms and interest rates than everyone. So It all depends. But I'd say that most mortgage brokers will give you much better service than larger banks, because their income depends on it and they may be able to shop many wholesale banks and pass the savings to you. But I'd make them work for it, because some brokers may not want to pass those savings to you and it'll cost you. Go to your library and read the book "Theft by Mortgage-Michael Burdict." Many brokers find loans based on the highest commission that they get from the wholesale bank. this means that these brokers are looking out for themselves and not you. The best advice. Shop your loan and read all of the fine print.
0 votes Thank Flag Link Sun May 8, 2011
It all depends on your situation. If you have a strong portfolio or relationship with your bank, I would recommend their mortgage banker as you will likely be offerend preferential rates and waicing of fees. However, if you do not have such a relationship with your bank, mortgage brokers have a variety of lenders available, therefore allowing them to "shop" for the best rate for you. Because this is a time when loans are harder to come by, if you are eligible for financing, you can probably negotiate the mortgage brokers fee as they will want your business. Do your homework, and you will most likely see that it is a buyers market right now. Either way you go, you should be in good hands.
0 votes Thank Flag Link Fri May 6, 2011
Carmen, a mortgage banker who does not work for a depository lender or credit union also has to pass the state tests and get licensed, so they need to get a background check through fingerprinting and the FBI, as well as taking continuing education classes. The other advantage of a mortgage banker that works as a correspondent lender is that they can shop rates, but underwrite in house. I can get a loan into my underwriting department right away, and get closed in a very short time. Brokering loans sometimes takes forever, as does it sometimes with a credit union or larger bank. A mortgage banker can be much more hands on.
0 votes Thank Flag Link Fri May 6, 2011
As an agent and home owner my personal advice is to go with a mortgage banker. They are both technically great at what the do. However, a mortgage broker is the middle man. He goes to different mortgage bankers to find you the best rate. If you go to a mortgage banker directly you are cutting the middle man and the middle man fees. Everyone's situation is different and you want to do what's best for you and your finances.
0 votes Thank Flag Link Fri May 6, 2011
I suggest you look around for the best rates and terms for your needs. It may be with a mortgage banker, mortgage broker, credit union or other source. Most of them have the same and/or similar programs to fit your personal requirements.

Good luck!

All the best,

Kat Becker
0 votes Thank Flag Link Fri May 6, 2011
I'd suggest going with a Credit Union. Most have their rates and fees published online so you can shop easily.

Also if you're putting 20% down and going conventional, try

Here's a great website about mortgages and the ins and outs including fabulous excel spreadsheets to analyze various scenarios. It also lists the "wholesale" rates so if a lender offers you something below the current wholesale then you are likely paying extra Lender Related fees to lower your rate. It's from a Wharton Business School professor:

good luck!
0 votes Thank Flag Link Thu May 5, 2011

I'd suggest using a 'Banker'. Remember, most Bankers (who lend their own funds) generally can also place their clients in a 'brokered' loan if he/she can't fit a loan into their own Bank product mix. A mortgage broker can only originate loans through other lenders. Translation...your only playing with half the deck with a Broker vs. a Banker.

This is just my opinion.
0 votes Thank Flag Link Tue May 3, 2011
I suggest using a GOOD mortgage banker. they have direct access to money. (I know a great Mortgage Banker).

Please let me know if I can assist you.

Marsha Montoya Mayer- Realtor
Paradise Properties of Florida, Inc.
0 votes Thank Flag Link Sat Mar 5, 2011

I don't know what you suggest to your clients, but, I suggest that they talk with their local bank or credit union.. Someone they know and trust. They offer some good local programs that the mortgage brokers do not have. If they come along with a preapproval in hand, then, we work with that banker. The client must feel comfortable with whichever bank or program that they are going to use to purchase the property.
0 votes Thank Flag Link Sun Feb 27, 2011
I suggest going through a Direct Lender, like HomeBanc. especially if you intend on going after bank owned listings. Most asset managers for banks do NOT want to see a preapproval from a mortgage broker that doesn't actually lend money. In fact nowadays many will require you get vetted by the lender of their choice.

You might also try and Endorsed Local Provider on or an "Upfront Lender" from:

Hope this helps.
0 votes Thank Flag Link Sun Feb 27, 2011
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