What is the Difference Between a Bank, Broker, & Lender When Qualifying for a Loan?
What are the Differences between a Bank, Broker and Lender?
Many are unsure of the differences between a bank, broker and lender and which mortgage professional they should work with. One of the biggest pitfalls a homebuyer can make in this regard is overlooking the importance of the individual who is handling their mortgage. This week’s video tip goes over some of the traits that make up a true mortgage professional.
What to Look for when Choosing Between a Bank, Broker or Lender
- Program Knowledge: Are they familiar with USDA, VA, FHA and Conventional underwriting guidelines? Understanding the various differences upfront is critical for a successful closing.
- In-depth understanding of credit reports and scoring: If a homebuyer does not qualify, how soon can they become mortgage ready? Do they offer any type of re-scoring options? For those who do not qualify, can they provide a roadmap where it could be possible in the future?
- Experience: How long has your loan officer or broker been at their profession? Have they been in enough situations to know what will and will not work when the going gets tough? Are they actually licensed by the NMLS (Nationwide Mortgage Licensing System)? Or are they only registered due to working at a bank or credit union?
- Professionalism! Licensing standards are stringent at both state and national levels for those that pass the requirements.
- Customer Service: Are you able to contact your loan professional after 5pm? Does the bank work on Saturdays?Are you able to work together to find solutions?