Friday, December 10, 2021

What is the difference between mortgage broker and mortgage banker?

If you’re looking for a mortgage, you would know that there are two types of professionals to choose from: a mortgage banker and a mortgage broker. It’s important to know the difference between a broker and a banker so you can better understand their roles. A mortgage banker is someone who works with financial institutions directly in order to offer loans to home buyers looking for credit options. On the other hand, a mortgage broker is an independent professional who works on behalf of clients by finding lenders willing to provide real estate financing. These two careers have very different roles when it comes down to helping people finance their homes! To learn more about what each type of professional does, continue reading this article.

 

What does a mortgage broker do?

A mortgage broker shops around with multiple lenders in order to get the lowest interest rates, terms, and fees for your individual situation (the lender’s lending criteria). When working with a broker, it’s important to understand that they are not employees of a financial institution. Moreover, a mortgage broker is not required to work with only one lender. They can shop around and get you the best possible rates from many different lenders, which is an advantage for borrowers in today’s market where there are over 100 mortgage providers available to US residents.

Brokers typically charge a fee (typically between .50% – .75%) of the total loan amount. Not only this,  but they will also use this fee to pay for advertising and other administrative costs.

What does a mortgage banker do?

A mortgage banker is similar to a mortgage broker but the difference between the two entities is that a banker will originate, fund, and service their customer’s loans while brokers simply help clients find them. They are also called direct lenders because they lend their money to home buyers directly rather than going through another lender like a mortgage broker or correspondent.

A mortgage banker can be licensed in all 50 U.S states as well, while mortgage brokers are only able to work within the state that they reside in. So, that means that mortgage bankers are able to service mortgage loans anywhere in the United States.

 

The differences between a mortgage broker and a mortgage banker

The main difference between a mortgage banker and a mortgage broker is that the mortgage banker has much more control over their own business. They have to put up all of their cash, take on all risks, and get to keep 100% of the profits they make. And, there is no middle man in this option.

Also, a mortgage banker typically represents one financial institution while a broker may represent many different banks or institutions. With a broker, you can get loans from multiple places and that means you will have someone to act on your behalf – find the best rates and opportunities for you, fill in all of the paperwork, communicate with everyone involved, then close the transaction.

One of the other major differences between them is that mortgage brokers do not have their own capital; they just place mortgages with lenders while getting paid for doing so. On the other hand, mortgage bankers have their own capital and they do not get a salary from mortgage brokers to place mortgages with lenders. 

 

Pros and Cons of a Mortgage Broker

Pros

– Will find you the best loan for your needs with the lowest interest rate

– Search multiple lenders at once so all of the paperwork goes directly from them to those specific lenders to minimize unnecessary hassle

– By having multiple lenders working with them, they are able to offer their clients many different options

Cons

– While most brokers do not charge fees, some do take out an origination fee which is paid by taking money off the top of what it would have been as if they did not work with a broker (the fee varies)

– Individual lender rules can get confusing through all of that paperwork going back and forth between many people; sometimes things may get lost, overlooked, or get delayed 

 

Pros and Cons of a Mortgage Banker

Pros

– Can help you get the best possible rate by being able to compare rates and lenders in one place

– As they are a part of bigger companies, they have the greater buying power to offer lower fees and interest rates

Cons 

– They do not actually originate the loan themselves, so you may end up dealing with multiple people throughout this process which can lead to miscommunication and delays

 

Conclusion

With so many mortgage brokers and bankers to choose from, it can be hard to know which one is the best fit for you. Fortunately, we have done research on both types of professionals in order to help you find the right solution for your needs. We have also reviewed some pros and cons of each type of mortgage professional as well as what they offer that makes them different. If you have any more questions after reading this article or want guidance on how to get started with a home loan application process please feel free to reach out! Our experts are always happy to answer your questions about mortgages.

© Copyright All Rights Reserved Affiliated Mortgage a division of Epoch Lending, LLC NMLS# 1816421

Developed and designed by https://blairallenagency.com

The post What is the difference between mortgage broker and mortgage banker? appeared first on Affiliated Mortgage.

Friday, November 19, 2021

Biggest Event in Rapid City this Year, Cirque Dream Story

Alesha Blair with Affiliated Mortgage, The Blair Allen Agency, and KOTA/KEVN Television is sponsoring the biggest event in Rapid City this holiday season, “Cirque Dream Story,” presented by ZirKiss Cirque on December 11th at 7:00 pm at The Monument Civic Center.

Don’t miss out on what is sure to be a memorable show for you and your family. Cirque Dream Story is a wonder world of sparkling dancers, daring aerialists, and electric fire performers. Experience the unforgettable kaleidoscope of costumes. This magical show is for all ages and brings together cirque performers from all over the world for the most inspiring production of the year.

Limited tickets will be available. Please hurry and secure your tickets for your family and friends. They won’t last long.

Alesha Blair
Senior Mortgage Broker - NMLS # 1817178
Phone: (605) 786-5405
Email: alesha@affiliatedsd.com

I began my career working in Rapid City as a senior account executive for a local TV-Radio network. In early 2010 my husband, our kids, and I had the opportunity to move to Scottsdale, AZ. While in Scottsdale I oversaw the digital marketing strategy for an international software company. In 2018, we decided to move back to South Dakota, because family is very important us, and we wanted to have our children know and understand the importance of family and have the opportunity to grow up around their grandparents and cousins. My husband and I have four wonderful children, two amazing grandchildren and a sweet little Chihuahua.

I am here to help and serve anyone who is looking to refinance their existing home or purchase a new home. I encourage you to contact me directly. I would love to start a safe and confidential loan application with you or answer any questions you may have.

Visit My Website

© Copyright All Rights Reserved Affiliated Mortgage a division of Epoch Lending, LLC NMLS# 1816421

Developed and designed by https://blairallenagency.com

The post Biggest Event in Rapid City this Year, Cirque Dream Story appeared first on Affiliated Mortgage.

Wednesday, November 3, 2021

Top 5 ways to save thousands of dollars on your first home

We thought we’d share with you these great tips on how you can save thousands of dollars on your first home purchase.

  • Find the Right Mortgage broker: The right mortgage broker/loan officer will empower you to make the right financial decisions.
  • Find the Right Realtor: Find a Realtor who knows what’s important to you and advocates for you
  • Lower Interest Rate: When rates are low, it is the best time to buy a new home
  • Become Certified and Secured: If you position yourself as a certified cash buyer, Your loan will be pre-underwritten which means by the time you’ve submitted an offer on your dream home, you’ll be ready to close quicker
  • Get a Total Cost Analysis: A Total Cost Analysis will breakdown your finances and loan options to help you see exactly what you will be paying over the life of your loan

Affiliated Mortgage has your best interests at heart. We will make your home buying process seamless and easy.

Click here to start your process today!

© Copyright All Rights Reserved Affiliated Mortgage a division of Epoch Lending, LLC NMLS# 1816421

Developed and designed by https://blairallenagency.com

The post Top 5 ways to save thousands of dollars on your first home appeared first on Affiliated Mortgage.

Friday, October 29, 2021

Refinance could potentially save you hundreds of dollars each month

Our customers who refinanced their homes at lower rates last year are saving hundreds of dollars each month.

Rates are still low. Don’t miss out on the chance to save on your mortgage payments.

To start your home refinance process, Click here!

© Copyright All Rights Reserved Affiliated Mortgage a division of Epoch Lending, LLC NMLS# 1816421

Developed and designed by https://blairallenagency.com

The post Refinance could potentially save you hundreds of dollars each month appeared first on Affiliated Mortgage.

Thursday, October 14, 2021

Sharing 8 steps to refinance your home mortgage

Sharing with you these 8 steps to refinance your home mortgage.

1. Refinance application
2. Get a pre-approval
3. Discover your best loan option that fits your needs with your loan officer
4. Documentation
5. Appraisal
6. Processing
7. Underwriting
8. Clear To Close

Congratulations, you have refinanced your mortgage and possibly saved thousands of Dollars!

Get in touch with our team of expert loan officers to help you throughout the home refinance process.

Click here to start the process today!

© Copyright All Rights Reserved Affiliated Mortgage a division of Epoch Lending, LLC NMLS# 1816421

Developed and designed by https://blairallenagency.com

The post Sharing 8 steps to refinance your home mortgage appeared first on Affiliated Mortgage.

Thursday, October 7, 2021

See what our customers have to say about us

Great feedback from our customers motivates us to do better every day. Affiliated mortgage takes pride in the fact that we keep our customers as our topmost priority.

We have more than 15 years of experience in mortgages and thousands of satisfied customers.

We would love to help you with your home purchase and home refinance process.

To start your refinance process with us, Click here!

To start your home purchase process with us, Click here!

© Copyright All Rights Reserved Affiliated Mortgage a division of Epoch Lending, LLC NMLS# 1816421

Developed and designed by https://blairallenagency.com

The post See what our customers have to say about us appeared first on Affiliated Mortgage.