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