Your choice of lender has a big impact on your Fairfax VA home’s mortgage interest rate. You can either go for mortgage bankers or mortgage brokers. And though they both advocate having the best program and products for you, which should you pick?
As an insider, mortgage bankers are my preference. Here’s why:
First, mortgage bankers have their own money, as well as other sources of money. With the sizable lines of commercial credit they also have available, they can write checks for mortgage loans to buyers of Fairfax VA homes for sale instantly.
Mortgage brokers, on the other hand, are only brokers; they have no money to lend. They act as middle men by taking your loan application to other mortgage lenders, mortgage bankers or other money sources.
Second, mortgage bankers can access their own money, thus allowing them to decide by themselves when and to whom they will lend. They can do their own underwriting and oftentimes, also get better interest rates than most mortgage brokers.
Now mortgage brokers will say they’re better than bankers since they have many types of different programs from numerous different lenders, more so for those with credit issues. However, they don’t reveal that mortgage bankers are also capable of that, and that they’re not limited to just using their own money.
This is not to say that mortgage brokers are always inferior to mortgage bankers. Those needing financing for their Fairfax VA homes who don’t fit the standard guidelines can use mortgage brokers to find a lender specializing in un-ordinary loans. Another scenario is when the borrower has a certain unusual credit or employment circumstance and would be best assisted by the broker who can tap into more sources for unconventional mortgage financing.
One critical thing to keep in mind when shopping for loans: Don’t compare the interest rates of one company today with the interest rates of another company tomorrow. Because the market changes twice a day, so do interest rates, making the comparison unfair. You will have to call mortgage lenders within the same time period, such as within the morning or, during the same hour to reliably compare the loans and interest rates that they offer.
Thierry is a Real Estate Agent at RE/MAX Premier, and Host of Talk Radio’s, “Inside Real Estate”
Thierry & his team Guarantee a $25,000 minimum savings for Northern VA Homebuyers by applying his unique insider techniques & strategies that he discovered throughout 8 years of exclusive Radio Interviews & Insider Access to wealthy Real Estate Insiders, Investors & Top Industry experts.
Phone: (703) 222-6714.
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