Difference Between a Mortgage Broker vs. Banker: Benefits of Working with Each
During your home buying journey, you may be wondering, “Should I work with a mortgage banker or a mortgage broker?” The answer may depend on your mortgage financing needs and overall credit profile. GuardHill is a mortgage banker and a mortgage broker, which provides added value to our clients. First, let’s outline the difference between a mortgage banker and a mortgage broker:
What is a Mortgage Banker?
- Can approve and close loans with their funds
- Has in-house underwriting and closing teams to streamline communication and improve operating efficiency
- A mortgage specialist who only focuses on originating and closing mortgages
- Has control over the loan process
What is a Mortgage Broker?
- Able to shop around with a variety of lenders for the best rate and loan program to match your mortgage financing needs
- Not bound to one set of lender guidelines
- Also, a mortgage specialist who only focuses on originating and closing mortgages
Benefits of Working with a Mortgage Broker During the Current Economic Climate
Working with a company that is both a mortgage banker and a broker provides you with more flexibility, especially during a time where guidelines may be getting tighter. As mentioned before, mortgage brokers take care of the rate and program shopping for you; they make sure to place your loan with a lender that will accommodate and meet your credit profile and financing needs.
Additionally, working with a mortgage broker may help alleviate the stress and worry of finding a lender that can meet your financing needs and efficiently close the loan, as well as the time spent comparing options from multiple lenders. With our unique lending platform, we pride ourselves on the ability to take care of the rate shopping for you, close a loan in as little as three weeks, and offer 24-hour approvals.
How Do Mortgage Bankers and Brokers Differ from Retail Banks?
A retail bank’s focus is not on mortgages – it is often on selling credit cards and collecting deposits. Additionally, retail banks only have access to one set of guidelines. If the bank cannot secure the loan or offer a reasonable rate, then the bank does not have any other options for that client. The client will have to re-apply for a mortgage with another bank or lending institution.
Overall, choosing a mortgage lender that will work hard to understand your financial needs and find you the best mortgage is just as important as finding the perfect home. As a mortgage banker and mortgage broker, GuardHill offers the lowest interest rates matched with the highest level of customer service because we only do mortgages. Our goal is always to bring our clients a sense of financial relief and peace of mind.