Are Arizona Mortgage Brokers The People Who Do the Lending?

In a short answer, no. Arizona Mortgage Brokers do not actually lend money to buyers. Their goal is to bring the buyer and the lender together so that they can carry out the loan/home buying process. The Arizona Mortgage Broker is the intermediary between these two people and tries to make the deal work right on both ends.

What Do Arizona Mortgage Brokers Do For Lenders and Buyers?

For the lender, Arizona Mortgage Brokers find them people to lend money to. They fill out the loan application, check the person’s credit history and debt to income ratio, and decide if it is a good deal for the lender by determining if the person will likely be able to make their payments or not. After all, if the buyer doesn't pay the lender back for what they've borrowed, the lender gets a very sour end of the deal.

Arizona mortgage brokers help the buyer more than the lender, though they are a very neutral party that is there to help. They help the buyer gather paperwork, prepare the loan application, and determine what they can afford and what amount of home loan they will likely be approved for. Brokers do a lot of busywork and go-between communication. They are in constant contact with the buyer and the lender and work to bring them together on a deal without those two parties ever technically working together.

Arizona Mortgage Brokers will also do a lot of research to see which lenders are loaning money and which are offering the best interest rates. They will do the shopping around for the buyer, and since they know the ins and outs of the market, this works our remarkably well for all parties involved.

Arizona Mortgage Brokers Vs. Arizona Mortgage Bankers

If you’re in the market to refinance or purchase a home, you’re probably dealing with a little bit of stress. It can be quite the process, and especially tough if you aren't working with someone who knows the ins and outs. After all, this is likely the biggest purchase you will ever make and largest financial decision of your life. You want those decisions to be in good hands, don’t you? By finding the right Arizona mortgage broker, you will feel more comfortable with your decision.

How are Arizona Mortgage Brokers and Mortgage Bankers different?

First, they hold different licenses. The loan originators—mortgage bankers—work for a specific lending company and are currently not licensed in Arizona. You must take a “buyer beware” approach when refinancing or purchasing a home with a mortgage banker. If you’re not sure which of these two you are working with, ask to see a license. Generally, you do not want to work with a broker (mortgage banker) who is working for a lending institution because they are biased.

Arizona mortgage brokers, however, are not working for a specific company, but they shop around and do their homework to find the best loan for your circumstances. Arizona Mortgage Brokers are self-employed and they specialize in real estate financing. They offer a tremendous variety of services and are very skilled and knowledgeable about their industry. They have access to lending institutions that the average Jo Schmo does not have, thus they open the door for so much more opportunity when buying a home.

Surprisingly, about 2/3 of Americans use a mortgage broker when buying a home. Even though they sometimes have a bit higher origination fee, the majority of people feel better about trusting this huge decision to someone who knows what they’re talking about. Arizona Mortgage Brokers can help you in this time of need.

Dennis Dahlberg
Broker/RI/CEO/MLO

www.setabay.com
Tel:  (623) 582-4444 | Fax: (888) 279-6917
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Phoenix AZ 85027