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New Jersey Mortgage Broker?
Instead of a Mortgage Banker?

What's the difference between a New Jersey mortgage broker and a mortgage banker?  And which one is best for your financial situation? 

Those are the two questions I get asked most often.  This page will explain what each one does and the benefits.

A NJ mortgage banker is simply a person or financial institution that lends it's own money.  The one big problem with using a banker is -- you have to do the shopping around yourself. 

YOU are the one that has to compare a mortgage loan from one banker to another.  That, of course, can be very time consuming.

However, the benefits can far outweigh the drawbacks.  When dealing with a direct lender, you can actually save more money and avoid all the extra fees that a broker tacks on to your loan. 

It all comes down to your willingness to -- shop around.

New Jersey mortgage brokers on the other hand...

...mortgage brokers don't lend money.  Instead, they do the shopping for you.  That's right, they actually serve as your own personal loan shopper.  And, unlike a bank, a broker has access to tens, even hundreds of banks and lending institutions. 

So if one bank doesn't have a deal that fits your situation, a New Jersey mortgage broker can go to other banks and lending sources to get you the best deal possible. 

That's something a banker can't do.  They only have one offer to give you.  If you don't like that offer, they won't ask another bank if they have a better deal for your mortgage.  You're the one who has to contact another bank and shop around. 

The big problem in dealing with a New Jersey mortgage broker is that to make money, the broker must tack on extra fees to your loan.  Because they don't lend their own money and aren't going to be the ones collecting the interest on the home loan, they must make money in other ways.

They main way a broker does this is by charging extra fees in the form of points, origination fees and just about any other way they can think of to make more money off of your loan.

Unfortunately, in the last few years, they have gone overboard with fees and points.  And many people have blamed brokers for the current housing crisis.

So what's the bottom line when deciding
on a New Jersey mortgage broker or banker?

The answer is simple -- shop around.  If you decide to go with a banker, shop around and make sure the banker knows you're shopping around.  If the lending institution knows that you are shopping around, they know they must give you their best offer.

If you decide to go with a mortgage broker, due your homework and make sure you are dealing with a reputable broker.  A good broker will shop around on your behalf.  A not-so-good New Jersey mortgage broker will just simply see how many extra fees they can tack on to your home loan.

Compare New Jersey mortgage rates online.
 View and compare today's New Jersey mortgage rates.

 

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How to Shop for a New Jersey Mortgage Company
Learn how to choose a NJ mortgage company.

 


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