Broker vs. Banker: How to Decide

When shopping for a home loan, there are many different aspects to consider. One primary option to consider is whether you use a mortgage broker or a mortgage banker. At the end of the day, both a mortgage broker and banker can help you obtain a home loan. There are however differences between the two that may sway your decision on which one you choose. Let’s begin by discussing a mortgage banker.
Mortgage bankers work directly for a financial institution, namely a bank. As such, the institution that a mortgage banker works for will be the source of the money that you take out as a loan. When meeting with a mortgage banker, they take all of the potential borrower’s financial information into consideration. Financial information includes an evaluation of the property and borrower’s ability to pay back the Salt Lake City home loan. With all of that information gathered, a mortgage broker then advises borrowers on all of the loan options that are available through their institution. Mortgage bankers themselves also have the ability to approve or deny a mortgage, a key fact to keep in mind.

Unlike bankers, mortgage brokers work independently of any one financial institution. Rather than provide borrowers with loan options from just one lender, mortgage brokers shop around for loan options from many lenders. Because of this, brokers have the ability to compare and contrast loan packages until they find the ones that best meet their clients’ needs. Mortgage brokers will work with both the borrower and the realtor to decide which loan packages are right for the borrower. One thing to keep in mind, unlike mortgage bankers, brokers are unable to approve or deny a loan, that ability is still left solely to the lender.

There are few other details to consider when deciding between a mortgage broker and a banker. Using a broker is ideal for borrowers who do not have time to shop around for loan options as that work is done by the broker. If a borrower is in a good position to qualify for a mortgage loan in the Salt Lake City area, going through the mortgage banker at their financial institution is usually best. Hiring a broker is typically a better choice when borrowers have difficulty qualifying for loans. Regardless of whether or not a borrower chooses a mortgage banker or broker, they’ll come away with a loan. Deciding between the two is best done after carefully considering one’s financial situation.

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