Re: Mortgage broker vs loan officer
11-15-2012 09:13 AM
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!