Brokers vs Bankers vs Builder's Lenders

Many people are under the wrong impression when it comes to the word broker. Don't be misled into thinking you're paying more if you are dealing with a broker. In most cases, as long as you're dealing with a qualified, experienced broker, you're probably going to get a better deal. Beware of any company or individual who claims they are not a broker if they are. If they are not honest about that part, common sense should tell you there may be other things you're told that are in question.

Here are some facts on the subject you really should know, to be an educated, informed borrower. I think you'll find them interesting.

• Mortgage Brokers are licensed to originate loans - bankers are not;
• Mortgage Brokers must attend continuing education and ethics training-bankers do not;
• Mortgage Brokers fees are transparent and must be disclosed-banker's fees do not;
• Mortgage Brokers must pass a rigorous background investigation to ensure no past criminal activity-bankers do not;
• Mortgage Broker's rates are based on wholesale pricing. Bank's interest rates are based on retail pricing.
• Most of the "Preferred" lenders that work with builders are not licensed, and fall within the loose requirements and standards of the bank loan offers who are not licensed.