Who Does a Mortgage Broker Arizona Work For?

 It’s a question that will likely cross your mind in the home buying or refinancing process. You want to make sure you’re not getting cheated, so you have to ask, who exactly is my mortgage broker Arizona working for?

Mortgage Broker in Arizona are self-employed most of the time. They hold a license within their state, but they do not work for any specific lending institution. (If they do, buyer beware!) 2/3 of Americans entrust their loan preparing, home searching, process in the hands of a broker.

Why Would a Mortgage Broker Arizona Have a Higher Origination Fee?

They've got to make money somewhere…just like you and me, they have to find a way to feed their families and meet their personal needs. Mortgage broker Arizona do not work for free, thus the origination fee. This is a fee that you rarely would have to pay out of pocket, but it is wrapped into the loan so that the broker gets paid. Sometimes brokers have higher fees than if you were to find your own loan directly, but that’s because they do more work in finding the best loans available. They also often have access to lower interest rates than you would be able to get on your own.

While Arizona Mortgage Brokers cannot give you loan approval directly (that is done by the lender) they can make sure you are represented in the best possible way so that the lender will accept your application. Most of the time, your broker will be able to predict whether your loan will be granted, especially if you have been pre-approved and are honest and upfront about your financial circumstances. Let them help you be on the path to home ownership today!

How does a Mortgage Banker Differ From an Arizona Mortgage Broker?

Their names sound similar enough, but the two have very different jobs. The Arizona mortgage broker is a middleman. They find the lender and the buyer and connect them to create the perfect match for financing a home. They do a lot of the leg work for the buyer and communicate directly with the lender without much, if any, interaction between buyer and lender. Most people (about 2/3) find this convenient and find that they can trust their Arizona mortgage broker to bring them the lowest interest rates and the best deals possible.

A mortgage banker is not a middleman. They can approve the loan directly, but they will offer you only one interest rate—that of the lender they are working for. They do not shop around for interest rates, it is what it is with a mortgage banker. They are a little more straightforward and they cut out the middleman all together.

You need to understand the differences between Arizona mortgage brokers and mortgage bankers so that you can make an informed decision on which one would be best to meet your needs. Some people find that middleman to be frustrating, while others find comfort in knowing their broker is not biased and knows the industry well.

Deciding Between an Arizona Mortgage Broker and a Mortgage Banker

The decision is tough for some and easy for others. Typically, people opt to go with the Arizona mortgage broker when buying a home because they offer a bit of a relief because the buyer does not have to know the ins and outs of the industry. It can be an intimidating task to have to prepare a loan application yourself, so if you don’t feel good about that, you’ll probably want to go the broker route.

However, if you know the industry well, are well-informed on interest rates and are comfortable with not having to compare them, you can go with a banker and get the job done a little more quickly. Either way, you are on the path to home ownership!

Mortgage bankers can offer their products directly to the consumer, avoiding the middleman. A mortgage banker can give a consumer direct loan approval. Mortgage brokers may have slightly higher origination fees, but may be able to find slightly better interest rates. Understanding this basic difference between mortgage brokers and mortgage bankers can help you decide which will better meet your individual needs. The industry is mature, and is well represented in Phoenix, so finding a local company to handle your loan should not be difficult.

Dennis Dahlberg
Broker/RI/CEO/MLO

Setabay Home Mortgage
Tel:  (623) 582-4444 | Fax: (888) 279-6917

www.setabay.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027