Fundamental Differences Between a Mortgage Broker Vs. Mortgage Banker
The fundamental difference between a mortgage broker and a mortgage banker is control.
What is a Mortgage Broker?
A mortgage broker originates a loan application, but works with someone else to handle underwriting, scheduling a closing and ultimately funding a loan.
What is a Mortgage Banker?
A mortgage banker handles all of the above directly, including underwriting the file, clearing the file to close, scheduling the closing and funding the mortgage loan.
A mortgage banker has more control over the transaction than a mortgage broker does.
The difference in the level of control that a mortgage banker has over a mortgage broker is huge in terms of assurances of service. How can a mortgage broker possibly guarantee an outcome without control of the entire mortgage process?
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Mortgage Bankers and Mortgage Rates
The process to price a loan for a mortgage banker occurs in a little black box called a pricing engine. In the pricing engine, all of the lenders that a mortgage banker works with (more than a dozen) have their rate sheets loaded into the pricing engine. A mortgage banker then plugs in the specifics of the loan, and out pops a ranking of lenders by interest rates. Banks’ appetites for mortgage loans change over time. Some are trying to grow and some have had their fill. As lenders become more aggressive, they price better. A mortgage banker monitors all these banks, and makes sure to get the best available pricing for customers.
Why search for the best mortgage rates when a pro at Paragon Home Loans can do it for you?
How We’re Different from Banks, Credit Unions, & Alternative Online Competitors
Banks have multiple product lines. Our focus is nothing but mortgages. That focus leads to better execution. Not to mention, banks price based on their appetite to put loans on the balance sheet. Hopefully, the consumer is catching the bank when they want more loans. We always want more loans.
Online mortgage companies are great -- if you have an 800 FICO score and can put 20% down on a house.
Paragon Home Loans understands the process at some of the larger online lenders. It’s an assembly line. Good luck talking to the same person twice. For everybody who doesn’t have an 800 credit score, the personal, hands on service from Paragon Home Loans makes for a better transaction.
The Advantages of Working With a Mortgage Banker Near Syracuse NY
Why is Paragon Home Loans different? The big national lenders wouldn’t know Elmira from Oswego.
Why is that important? When you understand the community that your business serves, you are better positioned to take care of your clients. We understand that a place like Oswego County will probably have comparable sales used in the appraisal that are beyond the standard 2 miles. Understanding this means the approval process goes smoother. It also means that if an issue comes up, we can sit down face to face and come up with solutions together. Local ownership also means we are invested in the community. We spend our money locally, donate locally and participate locally.
Get a Home Loan from Your Neighbors at Paragon Home Loans. To Talk About Your Options…
Why Choose Paragon Home Loans over the big banks?
You’re a Name, Not a Number
We know the home buying process can be intimidating, but you don’t have to go at it alone. When you call one of those 1-800 numbers from the big banks, you find yourself just being another number. At Paragon Home Loans, we have knowledgeable loan officers who are here to personally walk you through the mortgage process. Our loan officers and supporting team members are here to treat you as a person opposed to just a number.
Paragon Home Loans is a Local Lender
As a local lender, we can offer knowledge and insight on the surrounding housing landscape that the big banks just can’t! We are here to help you obtain the home of your dreams, and our team will help you even if you aren’t sure where to begin. If you are looking for a variety of loan products, continuous communication, and feeling valued throughout the home loan process then Paragon Home Loans is your trusted mortgage provider.
For the best mortgage rates, and an easy-to-understand loan process that makes you confident in your decision…