topic Re: Mortgage broker vs loan officer in Mortgage Loans

Mortgage broker vs loan officer

whodatnation2 — Thu, 15 Nov 2012 09:53:44 GMT

What is the difference between a loan officer and a broker in regards to what they charge for their services?

Re: Mortgage broker vs loan officer

namvet — Thu, 15 Nov 2012 14:18:34 GMT

Mortgage brokers/loan officers will charge what the market will allow. A GFE has to be provided so you can compare the costs. Mortgage brokers are competive with direct lenders and in some cases will charge less. Most consumers will call at least three lenders to compare rates and costs. Don't pay any fees upfront. The pre-qualification process should be free.

Re: Mortgage broker vs loan officer

whodatnation2 — Thu, 15 Nov 2012 15:33:03 GMT

Is there a way to know generally how much it will cost??

Re: Mortgage broker vs loan officer

AJC1987 — Thu, 15 Nov 2012 15:34:49 GMT

How much what will cost? The entire closing process? Or the loan origination fee?

Re: Mortgage broker vs loan officer

whodatnation2 — Thu, 15 Nov 2012 15:35:46 GMT

All of the above....thanks

Re: Mortgage broker vs loan officer

webhopper — Thu, 15 Nov 2012 17:01:48 GMT

whodatnation2 wrote:
All of the above....thanks

For you, I would recommend a mortgage broker who qualifies in FHA loans, especially if this is your first house. If you are a veteran, I would receommend that you look into VA loan options. Your scores are marginal for conventional and conventional requires a higher down payment and has stricter lending criteria.

Mortgage brokers don't get paid unless you get keys, so they tend to work harder. They are also working for YOU, not the bank.

A Loan Officer usually works for a bank, and he is more interested in keeping his employer happy than he is in keeping YOU happy because he doesn't work for you.

The fees can be higher with a broker, but in some cases, the end lender pays the mortgage broker fees.

If you want the name of a mortgage broker that I worked with on my FHA Streamline Refinance, I will be glad to give you her name. She specializes in FHA loans and was very knowledgeable when it came to refinancing my FHA loan on an investment property.

The fees will be disclosed to you up front when you receive your Good Faith Estimate. Sometimes borrowers "shop" for lenders by comparing fees listed in the GFEs from different lenders. The first step is to get a couple of GFEs to compare and determine which option best fits your needs. Here is a list of helpful threads for you that will help you for understanding abbreviations and for help understanding the Good Faith Estimate:

Guide to Common Abbreviations - Barry

Mortgage Acronyms & Abbreviations (what does PITI mean?) - ShanetheMortgageMan

Good Faith Estimates Explained- ShanetheMortgageMan

Best of luck to you as your start your journey!

WHODAT!!

Re: Mortgage broker vs loan officer

namvet — Thu, 15 Nov 2012 17:13:09 GMT

webhopper wrote:
whodatnation2 wrote:
All of the above....thanks
For you, I would recommend a mortgage broker who qualifies in FHA loans, especially if this is your first house.   If you are a veteran, I would receommend that you look into VA loan options. Your scores are marginal for conventional and conventional requires a higher down payment and has stricter lending criteria.

Mortgage brokers don't get paid unless you get keys, so they tend to work harder. They are also working for YOU, not the bank.

A Loan Officer usually works for a bank, and he is more interested in keeping his employer happy than he is in keeping YOU happy because he doesn't work for you.

The fees can be higher with a broker, but in some cases, the end lender pays the mortgage broker fees.

If you want the name of a mortgage broker that I worked with on my FHA Streamline Refinance, I will be glad to give you her name. She specializes in FHA loans and was very knowledgeable when it came to refinancing my FHA loan on an investment property.

The fees will be disclosed to you up front when you receive your Good Faith Estimate.  Sometimes borrowers "shop" for lenders by comparing fees listed in the GFEs from different lenders. The first step is to get a couple of GFEs to compare and determine which option best fits your needs. Here is a list of helpful threads for you that will help you for understanding abbreviations and for help understanding the Good Faith Estimate:

Guide to Common Abbreviations - Barry

Mortgage Acronyms & Abbreviations (what does PITI mean?) - ShanetheMortgageMan

Good Faith Estimates Explained- ShanetheMortgageMan

Best of luck to you as your start your journey!

WHODAT!!