There is a regular mistaken belief that a mortgage company is a bank that lends their own money as the mortgage value. In authenticity, these types companies that lend you money are either a mortgage banker or a mortgage broker. In a broader sense both these terms simply mean somebody who confers the loan. However, there is a enormous distinction between the two terms.
The mortgage bankers are the agencies that provide direct loans to you. Their working process includes advertising for themselves, processing the various applications, negotiating with the prospectus customers and at last granting the authorized funds. Nowadays, these types of bankers have increased in number, and more and more bankers are functioning with never-ending schemes and offers. In fact, the terms and condition of the loan as well as the rate of interest vary from one baker to other. However, these bankers often sell the loan to the secondary market.
The mortgage brokers are really middlemen, who handle all the details of your mortgage loan for you. They also select the best and most fitting banker on your behalf. Since they are skilled professionals, they know every minute detail of each banker running in the market. Their operational procedure includes the loan shopping and then they analyses the prerequisite of the different borrowers. Depending on this analysis, they put the lenders and borrowers together as well as get the best available deal for you. Most of these lenders from whom your broker gets loans do not even deal directly with public. As a whole, the job of a mortgage broker is to give you an idea about the right path, while saving your time and money.
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