First 5 Steps To Accepting A Mortgage Loan

Bank or Broker

When choosing between a bank or broker, buyers must remember there is a difference and understand it first. A broker is a person who works to find lenders for clients, but the broker doesn’t do the lending. Rather, brokers have a long list of lenders to work with, so they can shop around and find the best possible mortgage loan for buyers. The broker charges the buyer a fee to find the right loan for them, but the process is far more streamlined when the broker does all the work for the buyer.

A bank is a lender. If a buyer goes to a bank and asks them for a loan, they get the loan from that bank. They get the bank’s rates, the bank’s terms, and they work directly with that bank. It’s easy for a buyer to compare rates at different banks, or they can use a broker to do the same work on their behalf. Choosing is personal, but both can be beneficial to buyers.

Continue reading to learn about the most important process in the home-buying process.