Oddly enough, the majority of people who originate loans are not “Brokers” at all. Many have a real estate license and many do not. Those who work for banks do not have to submit to the same training and testing that we do. 

Technically, we are Mortgage Loan Originators and I operate a Mortgage Loan Company. You can check up on us and others here:

http://www.nmlsconsumeraccess.org

There is probably someone at your bank that originates loans. All they can offer is their institutions products. We can offer many different programs from many Mortgage Banks. The same is true of many online lenders: they have a more limited menu of options.

 In addition, we a strictly regulated and required to provide you with transaction costs and details upfront, and again when the loan is consummated.

We can earn our fee from the Lender or the Borrower, or shared by both in differing percentages. How do you evaluate what is “best”? Let’s say that you need $200,000. The rate at zero “points” (0 percent fee) is 4.25% but you can get 4% for 1 point ($2,000). The difference in monthly payment, on a 30 year loan is about $29. It would take you almost 69 months to recoup the $2,000 extra you paid, almost 6 years.

If rates go up over that time, you’ll be glad you paid extra. If, on the other hand, rates go down substantially during that period, you might benefit from a refinance without having invested as much in the cost. 

Which is better? My crystal ball is hazy but we will discuss all options with you.

In brief, we watch rates daily. We evaluate the Client’s income to debt qualifications to determine how much they can borrow. We check credit and check with you to confirm the accuracy of the report, and we advise if there is anything to be done to improve credit.

Lending can be confusing. In my opinion, having an experienced and knowledgeable consultant is tantamount to shopping rates. Rates change frequently. Commitment does not.