| It is recommended that you work with a | | | | could be a bank, a credit union, or a |
| mortgage broker or a mortgage lender before | | | | quasi-government company like FNMA or "Fannie |
| you shop for a house. You don't want to end | | | | Mae". Sometimes a lender will sell the loan |
| up falling in love with a home and then | | | | to the open market, but still continue to |
| finding out you can't afford it. Getting | | | | service it. The fee of a lender is typically |
| pre-qualified or pre-approved for a loan can | | | | less than that of a mortgage broker. The |
| help you decide what price range fits your | | | | mortgage broker, however, might find you a |
| situation. So what's the difference between a | | | | better rate because they are not bound by the |
| mortgage broker and a mortgage lender?A | | | | policies of one institution. It is, |
| mortgage broker is basically a retail seller | | | | therefore, debatable that going directly to |
| of a loan. They get paid a commission from | | | | the mortgage lender for a loan will save you |
| the lender and a service fee from you. The | | | | money.Then who should you use? The answer is |
| service fee can include an origination fee, a | | | | easy. Find the one who gives you the best |
| processing fee, a closing fee, and/or points | | | | deal. All mortgage brokers and mortgage |
| on the loan. The fees will be listed on the | | | | lenders should tell you their fees upfront, |
| documents you sign at the title company, on | | | | so shop around. It is also a good idea, in |
| the day of closing. The advantage of using a | | | | some instances, to use a lender referred to |
| mortgage broker is that they have information | | | | you by your realtor. Realtors work with |
| on a wide range of lenders and loans that can | | | | lenders all the time and yours might have a |
| fit your needs. A mortgage broker's | | | | good feel for one that is reliable and |
| obligation to his/her customer is to find the | | | | honest. In the end, though, you should use |
| best rate possible and make sure all the | | | | the mortgage broker or mortgage lender that |
| documents are prepared by the closing date. | | | | is right for you.For more information about |
| To do otherwise could cause the mortgage | | | | real estate tips and tricks, visit A. Stazko |
| broker to lose customers and tarnish their | | | | is a real estate assistant and founder of a |
| reputation with other real estate | | | | website that provides realtor, mortgage, new |
| professionals.A mortgage lender is the actual | | | | home, and real estate investing information |
| institution servicing your loan. A lender | | | | for North Texas. |