What’s the difference between a Mortgage Banker and Mortgage Broker?

 

Mortgage banker: “A banker who originates, sells, and services mortgages,
typically a business/bank that lend money to people or companies against collateral”

Mortgage brokers: “An individual or company which brings borrowers and lenders
together for the purpose of a loan origination, but does not service the mortgages”

 

Before making your final decision on your lending institution, you should request
a “good faith estimate” which will itemize the terms and the cost you will incur
to obtain financing. Including but not limited to: interest rate, term, type of loan, 
origination fees, buy down points, ect.

We recommend a comparison of “good faith estimates” from your final choice
of lenders. All pertinent information and cost you will incur will be itemized by
specific number making it easy to compare each lenders terms and fees.

 

 What’s the difference between being Pre-Qualified and Pre-Approved?

Before you start the process of looking for a new home, it is advisable that
you get pre-qualified for a loan. To get pre-qualified all you need to do is to
submit your personal information to a mortgage broker or mortgage banker.
Once your credit has been verified the broker or banker will issue a pre-qualification letter.
Presenting a copy of your prequalification letter along with your offer on a property
will let the seller know that you are a serious, qualified buyer.  

Once your offer has been negotiated and accepted you will need to submit a
copy of your purchase contract and your personal documentation to your
mortgage professional to verify the income, account balances, and credit
history before your loan is finally approved. Your lending institution will
also require an appraisal by a certified appraiser. Once your supporting
documents and appraisal have been verified and approved by your
mortgage professional, you will be pre-approved to make your purchase.

FYI : After applying for you loan, don’t make any changes in your financial
condition. Don’t make any major purchases, incur new debt or cancel any
existing accounts. Your mortgage company may recheck your credit and
verify employment a few days prior to your closing. Any change in your
credit or employment, could jeopardize your purchase.