Unlike traditional banks, Mortgage Brokers in Sumter SC focus solely on mortgage lending without the distraction of other credit products or personal finance services. As a Mortgage Broker in Sumter SC, they underwrite, approve and close loans for borrowers. They can then sell the loan to retail banks, investment firms, or agencies such as Fannie Mae and Freddie Mac. Mortgage Brokers in Sumter SC are more of a one-stop shop for Mortgages. By having access to several lenders, a Mortgage Broker in Sumter SC can offer a variety of mortgage loans, such as conventional, giant, FHA, VA and USDA. When you do business with mortgage banks, you're working with federally licensed professionals.
Licensed loan officers have chosen to sell mortgages as a profession and are well aware of credit laws and lender guidelines, and are 100 percent dedicated to advising you, structuring your loan and closing the transaction. The choice between a mortgage broker and a bank depends on your personal preferences and needs. Mortgage brokers can offer more loan options because they work with several lenders. Banks, on the other hand, offer their own credit products, but may have stricter guidelines.
Consider factors such as available loan options, personalized service, and who can offer you the best terms and rates. The distinguishing feature between a mortgage banker and a mortgage broker is that mortgage bankers close mortgages in their name and with their own funds, while mortgage brokers facilitate the processing of mortgages at other financial institutions. Mortgage brokers don't close mortgages in your name, but are the middleman between the person applying for the loan and the lender. The main difference between mortgage bankers and mortgage brokers is the way the loan is closed. Mortgage bankers close the loan in your name and use your funds (in most cases).
Mortgage brokers facilitate closing, while the lender itself closes and finances the loan. When working with a mortgage broker, it's a good idea to do a quick comparison to see if the rates and commissions they offer are truly competitive. Loan processing time can vary between mortgage brokers and banks, as it depends on several factors, such as the lender's efficiency, documentation, and the borrower's qualifications. By knowing the basic differences between the three types of mortgage professionals (mortgage brokers, loan officers, and mortgage bankers), you can find out who can save you the most time and money.
Today, we'll focus on what a mortgage banker is to clarify your roles and responsibilities, which can help you decide if a mortgage banker is the right option. for you. Researching and finding a mortgage lender on your own may equal some of the benefits of working with a mortgage broker, but a mortgage broker may have access to more resources. A mortgage broker can save time and effort, since they know the market more than the individual customer.
However, knowing the differences between mortgage bankers and mortgage brokers can save you frustration, time and, in some cases, money. Direct lenders, including banks, credit unions and online lenders, use their own money to finance mortgages, which can speed up the process mortgagee. As mentioned before, some lenders work exclusively with mortgage brokers and some brokers work exclusively with specific lenders. Sometimes, the lender pays the mortgage broker (since, after all, it's the broker who does business with the lender).
A good mortgage broker should be able to provide valuable information, such as which lenders lend money in certain areas, which offer a specific type of mortgage, and which accept or avoid loan applications for certain types of housing, such as cooperatives, condominiums or multifamily homes. You can and should request quotes from more than one broker, from more than one banker and to several credit agents. Some lender sites, such as Rocket Mortgage, also have a search engine that will connect you to local mortgage brokers. If your mortgage application involves difficulties, such as a low down payment or a poor credit rating, a broker could help you get a credit product with a better rate.
If the customer is independent enough to search the market for mortgages and lenders who can offer them different credit products, they may not use the services of a mortgage broker. Mortgage brokers act as independent consultants who work with both parties, the lender and the borrower, for a real estate transaction.
