California Mortgage Lenders and Brokers

By J. Hale

When shopping for a mortgage in California, you can choose to shop through either a mortgage lender or a mortgage broker. Both means have their advantages and disadvantages. This article explains the differences between California mortgage lenders and brokers, including the benefits and disadvantages of both:

Mortgage Lenders
A mortgage lender is a representative of a bank that offers mortgages. Mortgage lenders can find you the best loan that their company has to offer you, but they cannot consider you for mortgages offered by other companies. When shopping through a mortgage lender, you must shop around, comparing several different lenders. Without shopping around, you won’t know whether you’re getting the best deal.

The benefit of shopping for a mortgage through a mortgage lender: you don’t have to pay broker fees. Brokers are entitled to a certain percentage of the financed amount, adding thousands of dollars to your closing costs or mortgage amount. The disadvantage of shopping though a mortgage lender: inconvenience. To be sure you’re getting the best deal possible you have to obtain offers from several different lenders. This is a time-consuming process.

Mortgage Brokers
A mortgage broker is your own personal mortgage representative. Mortgage brokers work with several different mortgage lenders; therefore, they can do all of the work you’d normally have to do yourself if you shopped for a mortgage without a broker.

The benefits of shopping through a mortgage broker: convenience. The broker does all of the work for you -- you don’t have to spend all of your time calling different lenders and getting quotes. Furthermore, your broker will do some of the legwork in gathering all of the documents you’ll need in order to be approved. Finally, your credit will only be pulled once if you shop through a mortgage broker. If you request quotes from multiple lenders, your credit report will be pulled multiple times, causing a temporary drop in your credit score. The disadvantage of shopping through a mortgage broker is the cost of services. This cost must be considered in the total price you’re willing to pay for your new home.

Visit California Lending Hub to see our List of Reputable California Mortgage Brokers, whether you are looking for home purchase, refinance or a home equity loan. Article Source: http://EzineArticles.com/?expert=J._Hale