| |
A Mortgage Banker is a company or a corporation,
like a bank, that lends its own funds to borrowers and also
brings together the borrowers and the lenders. A loan officer
who works for a bank can also be called a mortgage banker. The
function of the mortgage banker is to sell the underlying loan
to an investor and often the mortgage banker continues to service
the loan. Sometimes the mortgage banker also sells the loans
to secondary markets.
Often the borrower approaches the mortgage bank directly
with the intention of getting corporate service and rates.
Since, the mortgage banker is the lender; the borrower might
want to approach the source of finance directly. While dealing
with mortgage banker, one can be sure that there will be stability
in terms of compensation which the banker will require in
return of the services provided. Mortgage bankers primarily
have only one focus of business, i.e. to make mortgage loans.
For this reason, they typically offer very attractive loan
programs and rates.
Even if the borrower uses the services of a mortgage broker
to act as a middleman, the ultimate decision to approve the
borrower’s loan application is with the lender. And
it can be more economical as you save the fees of the middleman
and make the process faster if you go directly to the source.
However, a mortgage banker will offer you various schemes
of only the lender in question. If you need to compare your
offers, you would need to discuss with several lenders to
do comparative shopping. You can browse through the real estate
section of your local newspaper to get an idea of the lenders
and their rates in your area. You can also search for mortgage
bankers over the Internet or through Yellow Pages. Also, if
your application is not accurate and is presented in poor
light, you probably haven’t made a good impression on
your mortgage banker. When you use the services of a mortgage
broker, he or she might help you restructure your application
legally to suit the requirements of each lender.
As money-lending institutions, all mortgage bankers are subject
to regulation. You can check on how the industry is regulated
in your state by contacting either the state's department
of banking or division of real estate. You can check there
for any licensing requirements, and check if the particular
lender is in good professional standing. The Library of Congress
has an index of state and local government web sites.
When you are a choosing a mortgage banker, there are several
factors that play part. It might help if you choose a lender
with slightly flexible terms, so that you can get the job
done on a deadline. You also need to choose a lender of a
decent size, so that you can have security and personal attention
both. Also, choose a lender that can deliver what it promises.
It is also advisable that your lender has a good standing
in the market and is well-established, i.e. it is in the business
for a few years at least. You can check the mortgage banker’s
company history with the local Better Business Bureau in your
area. In a number of state mortgage bankers are required to
be licensed, so you can also check the credibility of the
banker. You can also ask other investors and real estate agents
in your area to give their suggestions and referrals. It is
important that you deal with a mortgage banker that has experience
with investor loans. Also, choose a banker who offers a variety
of deals and offers the facility to switch the loan program
if you find out that a particular loan program is not working
for you.
You must be sure that the mortgage banker you are thinking
of taking a loan from is reputable. Check whether the mortgage
banker is a member of the Mortgage Bankers Association of
America. The members of this association originate and service
commercial and residential mortgages.
Related Mortgage Career Topics:
|
